October 20, 2015
[Press release] - Regardless of processing transactions online, mobile, or in-store, you have had to fight fraud. And chances are, you have worked with various forms of risk management systems over the years. In an attempt to block all potential fraud, many traditional risk management systems often go too far—they stop all suspicious transactions, even the mildly suspicious ones, just to be safe. The downside of this approach is that you end up blocking a lot of legitimate customers, meaning you lose out on revenue and, in some cases, new customers.
At Adyen, risk management has been an integral part of our payments solution since the beginning. And over the years, thanks to the wealth of data Adyen have harvested from each transaction, the company has learned a thing or two. Adyen learned that a seemingly good transaction with a valid US credit card, email address, and device can actually originate from a "shopper" in Slovenia who’s part of a high-risk fraud network. Conversely, the company has learned that many apparently suspicious transactions coming from shared networks often trace back to legitimate shoppers. The key to deciphering the good shoppers from the bad is by aggregating global data, fraud networks and pinpointing the person behind the transaction—what the company call the "ShopperDNA."
With this foundation in mind, Adyen is now introducing an updated risk management system called RevenueProtect. RevenueProtect is built into our global payment processing platform and is immediately available to all of Adyen’s customers globally.
With RevenueProtect, you can:
- Truly identify shoppers behind transaction data with ShopperDNA - RevenueProtect leverages advanced linking algorithms, digital fingerprinting, proxy piercing, and historical global data to develop a holistic view of the shopper despite them changing networks, devices and login identities. A key part of this is to determine the relationship network behind individual transactions and pinpoint fraud networks. This enables RevenueProtect to identify fraudsters even as they attempt to evade detection and reduce friction on loyal customers across their different login sessions and channels.
- Reduce or eliminate manual reviews - Based on all the available data, RevenueProtect assigns a fraud score to each transaction. Good shoppers are instantly approved and proceed unhindered. Similarly, known fraudsters are instantly denied. For those high-risk shoppers that can’t be instantly approved or denied, the Dynamic Decisioning Engine routes the transactions to additional security checks, such as 3D Secure, or in some cases, manual review. But since RevenueProtect does all the heavy lifting, you will have far fewer cases for manual review.
- Customize the engine to meet your specific needs - RevenueProtect is built on a fully customizable risk rules engine that leverages machine learning and industry-specific rules. This tool comes with an easy-to-use, Web-based interface that allows you to instantly customize rules to meet your exact needs. Further, the tool also uses your historical data, industry specific data and statistical modeling to suggest changes to increase your revenue and reduce friction and fraud.
The result? For most merchants, it means dramatically reduced chargebacks, reduced manual reviews, and increased conversion, all the while reducing friction. In other words, merchants are minimizing risk and maximizing revenue. For instance: Spotify, which processes payments with Adyen in 56 countries, saw their chargebacks reduce by 70%; furniture retailer Westwing saw a 30% reduction in manual reviews, and their overall risk refusals reduced by 98%.
RevenueProtect is currently available on Adyen processing platform and is available to all its customers. If you are interested in learning more about RevenueProtect or Adyen’s global processing capabilities, please get in touch.