The Fraud Practice Publishes New Article about the Impact of Manual Review on a Merchant's Customers and Brand

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The latest thought leadership article from The Fraud Practice discusses the importance of taking the time to consider the options for performing manual review as it is a good way to protect the two most important assets a merchant has: their customer and their brand.

The Fraud Practice, LLC

The Fraud Practice, LLC

For many merchants, the costs associated with manual review can easily be justified by the profits gained from risky orders that would've otherwise been declined.

Even with fraud tools in place the decision to either accept or reject a transaction isn’t always clear and may require human interaction; or what is termed a “manual review”. Making use of manual reviews is about saving sales just as much as it is about catching fraud, so it is critical to have effective controls and people conducting them.

When an order has a mix of high and low risk signals or the merchant just isn’t sure about the true level of risk, manual reviews provide a better alternative to either refusing the sale or accepting it blindly. In this context it protects both the brand and the merchant’s customers. When these orders with uncertain risk are all declined merchants miss out on the potential lifetime value of many customers they wrongly turned away. Whereas one good purchase experience can lead to many more down the road, falsely labeling a transaction as fraudulent and refusing the sale can lead to that customer never coming back. On the other side of the spectrum, accepting all of these orders and hoping for the best can lead to significant brand damage from high fraud losses and consumers associating the merchant with a fraud problem, both resulting in a negative impact on the merchant’s bottom-line.

“There is a cost associated with manual reviews whether a merchant decides to perform them in-house or outsource them to a third party, but this doesn’t mean that there isn't a positive ROI for conducting manual reviews,” says Michael Dembinsky, CEO of the fraud prevention firm eFraud Security. “For many merchants,” he goes on to elaborate, “these costs can easily be justified by the profits gained from risky orders that would’ve otherwise been declined.”

Focusing on the impact of manual review is important now as ever with the holiday season just around the corner. Many merchants are expecting increased transaction volumes and higher fraud attempt rates during the peak holiday sales season. The Fraud Practice’s new feature article, titled “The Impact of Manual Review on Your Customers and Brand,” discusses several key considerations that all merchants should address and acknowledge. These considerations are relevant year-round, but often require a closer examination in anticipation of increased transactions and fraud attempts which tend to put more of a strain on manual review processes.

Steve Wyatt, Practice Principal eCommerce Consultant with The Fraud Practice, discussed the importance of managing manual reviews and fraud teams as both increase during the holiday season. “Managers are now expected to support the larger staff and maintain or lower losses during the peak sales season,” Wyatt said. “The blunt force of added resources stretches team bandwidth and impacts fraud team overall engagement. It is critical for senior management to be prepared with a strategy to keep the fraud team engaged as the team grows along with the transaction volumes.”

For more information, see the latest article from The Fraud Practice: The Impact of Manual Review on Your Customers and Brand

About The Fraud Practice

The Fraud Practice is a privately held US LLC based in Sarasota, Florida. The Fraud Practice provides consulting services on eCommerce payments, fraud prevention, and credit granting as well as prepared research and training for payment and fraud professionals. Businesses throughout the world rely on The Fraud Practice to help them build and manage their payment, fraud, and risk prevention strategies.

The Fraud Practice, LLC
1800 2nd Street, Suite 740
Sarasota, FL 34236
Direct: 941-244-5361

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