Forter to prevent the 10% revenue loss merchants experience due to false payment declines

Thursday 9 July 2020 13:12 CET | News

US-based ecommerce fraud prevention company Forter has unveiled an automated payment routing solution, called Forter Smart Routing.

According to the press release, the solution will help merchants prevent the revenue loss driven by false payment declines throughout the payment process. The payment process involves gateways, credit card issuers, processing banks, merchants and more, all of which make fraud decisions in isolation. 

This can lead to many cases where a trusted customer is known by one of the players, while is completely unknown to the others, resulting in 1 out of 10 legitimate purchases being declined. Forter Smart Routing solves this problem by uniting all parties in the payment process through the creation of a trusted data network. This allows accurate and consistent decisions throughout the process, ensuring legitimate transactions to be approved.

The decline of legitimate transactions has never been a bigger issue for merchants, costing up to 10% of their revenue. These false declines are occurring at the payment or bank level, where merchants have little to no visibility into the decision-making process, meaning they lose control over whether the transaction is ultimately approved once the customer hits checkout. 

This issue has been amplified due to changes in customer purchasing habits during the coronavirus pandemic, which shifted from in-store to online. This means that as much as 30% of customers purchasing with a merchant are new to them – double the amount typically seen – and are therefore more likely to get falsely declined. 

Consequently, the solution, powered by AI technology and a Global Network, provides the following capabilities:

  • Accurate pre-auth fraud detection, which improves business’ risk profile and increases authorisation rates by blocking fraudulent transactions before bank authorisation;

  • Dynamic 3DS to increase conversion while meeting all risk and compliance requirements by triggering 3DS authentication only when required;

  • Smart routing to determine the optimal processor for every transaction with advanced AI models to avoid authorisation declines and minimise processing costs;

  • Recovery of declines to recover legitimate transactions and revenue that would have been lost entirely after being declined during the payment flow.

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Keywords: Forter Smart Routing, merchants, false payment declines, Forter, automated payment routing solution, payment gateway, credit card, issuers, fraud, legitimate transactions, checkout, 3DS, payment flow
Categories: Fraud & Financial Crime
Countries: World
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Fraud & Financial Crime

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