Carat from Fiserv launches fraud mitigation solution

Accessible through the Carat global commerce platform, the modular solution equips merchants with controls that can be customised based on a firm’s risk appetite, along with simplified access to transaction scoring, chargeback management, and other capabilities.

Merchants’ relationship with fraud

While online fraud continues to proliferate, as evidenced by an estimated USD 41 billion lost to ecommerce fraud in 2022, it may be surprising that only 27% of merchants say reducing fraud losses is guiding their fraud mitigation philosophy, as per the press release. Instead, merchants indicate they are focused on maximising sales, minimising user friction, reducing false declines, or balancing sales with fraud losses.

Fiserv’s officials said that as omnichannel fraud becomes more sophisticated, businesses are trying to strike a balance between reducing risk and driving revenue – whether that is by maximising authorisations, limiting false declines, or preserving consumer trust. By providing businesses with a highly configurable and scalable solution, merchants can align fraud controls to their business strategy and easily augment their tech stack without integrating to additional vendors.

The modular solution simplifies how businesses manage risk via:

• A flexible, rules-based fraud prevention engine, which provides control over risk thresholds;

• Trusted chargeback protections, which safeguard against consumer chargeback abuse;

• Monitoring and scoring capabilities, which help stop suspicious transactions by leveraging machine learning, behavioural analytics, and industry-leading link analysis.

Data advantages in fraud prevention

The rules-based engine powering Fraud Mitigation is augmented by acquiring, card, network, and issuer data from Fiserv – providing a horizontal viewpoint across payment activity. These highly differentiated data sets are ingested by machine learning tools to improve decisions and provide optimal outcomes, such as improved authorisation rates and a reduction in false declines, for ecommerce transactions. 

Representatives from Aite Novarica commented that card not present transactions have historically been challenging from a fraud mitigation perspective, as very limited data passes through the authorisation stream from the merchant to the issuer. Augmenting decisioning with a wide variety of data sources can significantly strengthen the customer risk profile, especially when a business is able to connect merchant and issuer data.

Fraud Mitigation is part of Carat, the global commerce platform from Fiserv that orchestrates payments and experiences for the world’s largest businesses. With Carat, leading brands can unify their commerce, optimise transactions, and imagine and realize new ways to engage with customers.