Enterprise Fraud Management Solutions

Digital commerce is surging, but so is transaction fraud. PayPal alone sees 168,000 fraud events on average per day.¹ The challenge facing merchants is therefore to improve their detection of illegitimate transactions without worsening the user experience for genuine shoppers. Transaction fraud and unseen threats like stolen credentials or suspicious buying patterns can harm your business.

Fraud solutions can analyze transactions to spot anomalies, much like how an optometrist spots issues with a patient's vision. When it comes to driving enterprise fraud management whilst optimizing revenue generation, it pays to work with a trusted industry name. PayPal Braintree have the experience, the technology, and the industry experience to make this a reality.

Fraud prevention strategies in the age of agility

As merchants scale up their digital investments and attract more customers, the corporate attack surface expands and the organization may become a more attractive target for fraudsters. Nearly all (97%) e-commerce fraud prevention decision makers polled for a recent Forrester Consulting report say they have experienced fraud at their organization in the past 24 months.² Current tooling is clearly not working. Legacy rules-based solutions are too inflexible to fight today’s malicious campaigns. Fraudsters have the advantage of speed and agility – which makes them more than capable of side-stepping any new filters that risk teams put in place.

Legacy tools can also be something of a blunt instrument. If fraud teams get it wrong, they can end up blocking both false and legitimate transactions, leading to lost sales and disappointed customers. The report The Trust Cost of Digital Fraud, conducted by Ponemon and sponsored by PayPal reveals that the second biggest concern of global merchants is false declines, cited by 53% of respondents.³ Today’s customers demand a frictionless and secure experience. Companies unable to provide it will struggle to generate revenue and customer loyalty.

A final challenge with existing solutions is the extra time and money it costs merchants to investigate cases. Respondents to the Forrester study say the average incident takes over a week to resolve. This not only worsens the customer experience and drags down sales but adds to wasted labor costs. Organizations are losing millions of dollars each year as a result of fraud and related costs.⁴

Optimize revenue generation with Braintree’s fraud solutions

Instead of hiring more staff to investigate transaction fraud reactively, merchants should be thinking about technologies that mitigate risk to keep them one step ahead of their adversaries. This is where automated, machine learning-based management solutions could improve business outcomes as part of enterprise fraud management. Intelligent risk algorithms can be applied to large datasets with multiple variables, enabling organizations to rapidly discover correlations that human eyes would miss. These systems are also able to continuously adapt even as the fraudsters do, by leveraging machine learning to optimize fraud filters.

PayPal Braintree payment processing platform helps offer the best-of-both-worlds: automated machine learning capabilities trained on a huge dataset, but delivered in a user-friendly way, so that businesses with fewer in-house resources can benefit from enterprise-grade risk management. That data comes from a consumer-merchant network comprising over 433 million active accounts and more than 35 million active merchants accounts globally – to deliver insight from both sides of the transaction.⁵

With PayPal and Braintree, merchants can:

• Drive authorization rates and help maximize revenue: 74% of Braintree users indicate that Braintree has had a positive impact on authorization rates since its adoption⁶
• Reduce transaction costs: 86% of Braintree users in Europe agree Braintree has low transaction costs or service fees⁷
• Reduce chargeback costs: In the US, Braintree can help reduce chargeback rate by 4 bps⁸
• Improve operational efficiency in the payment ecosystem: 84% of Braintree users agree Braintree reduces operational overheads⁹