{"id":1376,"date":"2022-10-02T10:47:29","date_gmt":"2022-10-02T10:47:29","guid":{"rendered":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/"},"modified":"2022-10-02T10:47:29","modified_gmt":"2022-10-02T10:47:29","slug":"regain-control-of-revenue-understanding-fraud-prevention-tech","status":"publish","type":"post","link":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/","title":{"rendered":"Regain Control of Revenue: Understanding eCommerce Fraud Prevention Tech"},"content":{"rendered":"

Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with. And no, we can\u2019t list them in order of severity or frustration because they all deserve to appear at the top of the list:<\/p>\n

1) It\u2019s not their call.<\/strong> Merchants<\/a> invest heavily in the sales cycle to attract and sell to a customer. Then, as they are ready to earn the revenue, a third party \u2014 that they are required to include in their equation \u2014 can single-handedly, without consultation, kill the sale. Just like that. It\u2019s like going fishing where a health inspector on the dock gets to grab your fish as you leave, throwing a third of them back into the sea without explaining why.<\/p>\n

2) \u201cWait, what just happened?\u201d<\/strong> Today\u2019s issuers<\/a> send vague indications \u2014 or none at all \u2014 to your customer as to why they aren\u2019t going to be able to buy that weighted blanket or martini shaker set. With no instructions (or even just a clue) to know how to quickly remedy the situation, many customers give up, abandon carts, and even blame the merchant.<\/p>\n

3) It\u2019s actually a valid transaction from a reliable customer.<\/strong> Okay, perhaps there is a position at the top of the list; this one is the hardest to swallow: Many of these declines are triggered by conservative algorithms, protecting their customer banks, creating a massive \u201cgray area\u201d that merges questionable transactions with the clearly problematic. In short, the ecommerce credit card fraud prevention makes the wrong call.<\/p>\n

In the end, the result is common, painful and expensive: Too many merchants, losing too many customers, who experience declines \u2026 that aren\u2019t even justified.<\/p>\n

 <\/p>\n

What are they looking for?<\/h3>\n

First, let\u2019s agree that this Achille\u2019s Heel of ecommerce fraud prevention is indeed based on a complex challenge: A credit card decline can come from a long list of causes, some valid, some technicalities, and some downright mistakes, including:
\n\u2022 An expired card \u2013 often easy to solve with the reentry of the date, but sometimes presented simply a mysterious, undefined rejection.
\n\u2022 Mismatches: A billing address and personal info don\u2019t match other records (which may indeed be the result of fraud, but often merely a typo or, say, ordering a gift to be shipped to a friend\u2019s address)
\n\u2022 Insufficient funds in the account (which often shouldn\u2019t be a show-stopper, as a customer may be expecting to receive more funds, or to pay on credit).<\/p>\n

 <\/p>\n

Everyone loses \u2013 merchants perhaps the most<\/h3>\n

So let\u2019s review where we are: The customer gets justifiably frustrated because, after all the research and comparison shopping, a mysterious glitch is keeping them from completing the purchase. The issuer has \u2014 due to its own conservative approach \u2014 effectively shot themselves in the foot and lost revenue. This applies, by the way, both to today\u2019s lost commissions and those in the future: If the customer reduces use of the credit card, that\u2019s an additional, long-term loss to the card issuer.<\/p>\n

But the merchant probably carries the heaviest lost here. They have built a sales funnel through marketing, advertising, and branding, tech support, and all the other steps, and then \u2026 lost the sale after doing it all right.<\/p>\n

Enough about the problems. They are well documented, clearly understood, and sadly, accepted as the cost of doing business. But with 70% of American carrying at least one credit card, 14% carrying at least 10, and 40% of Americans likely to use their cards for a given purchase, the real question is: what can we do about it?<\/p>\n

 <\/p>\n

More data means fewer declines<\/h3>\n

No one can eliminate the problem completely, because there\u2019s a clear business justification to perform risk analysis and define\/draw clear lines in the sand over which an issuer prefers not to step. But as Kipp customers have discovered, we can dramatically reduce unnecessary declines by adding the merchant\u2019s own data to the equation, helping boost the issuer\u2019s confidence in the customer and soften the risk calculation.<\/p>\n

We do this in two ways. First, at the most basic level, our platform uses a bid\/ask interaction to allow the merchant to participate financially in the risk when there\u2019s a gray area. They pay a small percentage of the total transaction in order to cover the occasional loss. A pre-defined algorithm on both sides \u2014 one for the merchant and one for the issuer \u2014 automatically negotiates each transaction, at the last moment, once the issuer has decided it would otherwise reject the charge.<\/p>\n

Even more powerful is Kipp\u2019s ability to assess the merchant\u2019s own customer data \u2014 often richer and more in-depth than that of an issuer \u2014 to create a score that provides real, empirical justification to accept a transaction. This merchant fraud prevention data is usually based on historical and behavioral patterns that indicate that this customer is reliable, purchases routinely, and displays indicators to counter-balance some of the overreaching assumptions of the issuer\u2019s own algorithmic analysis.<\/p>\n

 <\/p>\n

At the end of the day, it\u2019s about shrinking the gray area<\/h3>\n

With 62% of merchants<\/a> seeing new types of credit card fraud in 2021, issuers will keep searching for the right formula to accurately assess each and every transaction, to determine when to accept a charge and when to reject it. The ideal approach to fraud prevention for ecommerce will never be too liberal or too conservative; it will be to maximize the data available \u2014 from every player in the equation \u2014 and minimize that gray area where a \u201cbest guess\u201d is often the wrong one.<\/p>\n","protected":false},"excerpt":{"rendered":"

Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with. And no, we can\u2019t list them in order of severity or frustration because they all deserve to appear at the top of the list: 1) It\u2019s not their call. Merchants invest heavily in the … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":1377,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nRegain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp<\/title>\n<meta name=\"description\" content=\"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Regain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp\" \/>\n<meta property=\"og:description\" content=\"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\" \/>\n<meta property=\"og:site_name\" content=\"Kipp\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-02T10:47:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2160\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"liat\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"liat\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\"},\"author\":{\"name\":\"liat\",\"@id\":\"https:\/\/letskipp.com\/#\/schema\/person\/3c61b4ccf56d5802f6e121cde9a0ad0b\"},\"headline\":\"Regain Control of Revenue: Understanding eCommerce Fraud Prevention Tech\",\"datePublished\":\"2022-10-02T10:47:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\"},\"wordCount\":940,\"publisher\":{\"@id\":\"https:\/\/letskipp.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\",\"url\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\",\"name\":\"Regain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp\",\"isPartOf\":{\"@id\":\"https:\/\/letskipp.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg\",\"datePublished\":\"2022-10-02T10:47:29+00:00\",\"description\":\"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.\",\"breadcrumb\":{\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage\",\"url\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg\",\"contentUrl\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg\",\"width\":2160,\"height\":1440},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/letskipp.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Regain Control of Revenue: Understanding eCommerce Fraud Prevention Tech\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/letskipp.com\/#website\",\"url\":\"https:\/\/letskipp.com\/\",\"name\":\"Kipp\",\"description\":\"Authorize More Transactions\",\"publisher\":{\"@id\":\"https:\/\/letskipp.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/letskipp.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/letskipp.com\/#organization\",\"name\":\"Kipp\",\"url\":\"https:\/\/letskipp.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/letskipp.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2024\/10\/kipp-logo-light.svg\",\"contentUrl\":\"https:\/\/letskipp.com\/wp-content\/uploads\/2024\/10\/kipp-logo-light.svg\",\"width\":95,\"height\":40,\"caption\":\"Kipp\"},\"image\":{\"@id\":\"https:\/\/letskipp.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/letskipp.com\/#\/schema\/person\/3c61b4ccf56d5802f6e121cde9a0ad0b\",\"name\":\"liat\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/letskipp.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/c3a9149ce5cca15742984b5b84728e646005c5981d3892233044b30da4c36cb9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/c3a9149ce5cca15742984b5b84728e646005c5981d3892233044b30da4c36cb9?s=96&d=mm&r=g\",\"caption\":\"liat\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Regain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp","description":"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/","og_locale":"en_US","og_type":"article","og_title":"Regain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp","og_description":"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.","og_url":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/","og_site_name":"Kipp","article_published_time":"2022-10-02T10:47:29+00:00","og_image":[{"width":2160,"height":1440,"url":"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg","type":"image\/jpeg"}],"author":"liat","twitter_card":"summary_large_image","twitter_misc":{"Written by":"liat","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#article","isPartOf":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/"},"author":{"name":"liat","@id":"https:\/\/letskipp.com\/#\/schema\/person\/3c61b4ccf56d5802f6e121cde9a0ad0b"},"headline":"Regain Control of Revenue: Understanding eCommerce Fraud Prevention Tech","datePublished":"2022-10-02T10:47:29+00:00","mainEntityOfPage":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/"},"wordCount":940,"publisher":{"@id":"https:\/\/letskipp.com\/#organization"},"image":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage"},"thumbnailUrl":"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/","url":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/","name":"Regain Control of Revenue: eCommerce Fraud Prevention Tech | Kipp","isPartOf":{"@id":"https:\/\/letskipp.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage"},"image":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage"},"thumbnailUrl":"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg","datePublished":"2022-10-02T10:47:29+00:00","description":"Online merchants suffer from three maddening realities when it comes to credit card charges declined by the issuers they work with.","breadcrumb":{"@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#primaryimage","url":"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg","contentUrl":"https:\/\/letskipp.com\/wp-content\/uploads\/2022\/10\/kipp_blog_regain_control.jpg","width":2160,"height":1440},{"@type":"BreadcrumbList","@id":"https:\/\/letskipp.com\/blog\/regain-control-of-revenue-understanding-fraud-prevention-tech\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/letskipp.com\/"},{"@type":"ListItem","position":2,"name":"Regain Control of Revenue: Understanding eCommerce Fraud Prevention Tech"}]},{"@type":"WebSite","@id":"https:\/\/letskipp.com\/#website","url":"https:\/\/letskipp.com\/","name":"Kipp","description":"Authorize More Transactions","publisher":{"@id":"https:\/\/letskipp.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/letskipp.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/letskipp.com\/#organization","name":"Kipp","url":"https:\/\/letskipp.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/letskipp.com\/#\/schema\/logo\/image\/","url":"https:\/\/letskipp.com\/wp-content\/uploads\/2024\/10\/kipp-logo-light.svg","contentUrl":"https:\/\/letskipp.com\/wp-content\/uploads\/2024\/10\/kipp-logo-light.svg","width":95,"height":40,"caption":"Kipp"},"image":{"@id":"https:\/\/letskipp.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/letskipp.com\/#\/schema\/person\/3c61b4ccf56d5802f6e121cde9a0ad0b","name":"liat","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/letskipp.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/c3a9149ce5cca15742984b5b84728e646005c5981d3892233044b30da4c36cb9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c3a9149ce5cca15742984b5b84728e646005c5981d3892233044b30da4c36cb9?s=96&d=mm&r=g","caption":"liat"}}]}},"_links":{"self":[{"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/posts\/1376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/comments?post=1376"}],"version-history":[{"count":0,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/posts\/1376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/media\/1377"}],"wp:attachment":[{"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/media?parent=1376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/categories?post=1376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/letskipp.com\/wp-json\/wp\/v2\/tags?post=1376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}