Blog

Payment 101:
Fraud Orchestration & Management

As the number of consumers shopping online continues to rise, incidents of fraud rise with them. For merchants this presents something of a catch-22 – how do you prevent fraudulent transactions without stopping legitimate ones going through? Payment Orchestration offers an effective solution; helping merchants to manage fraud without the manual effort the process usually requires.

Global losses from payment fraud tripled from $9.84 billion in 2011 to $32.39 billion in 2020, and the cost of the crime is is projected to reach $40.62 billion in 2027 – a 25% increase on 2020 figures.

The findings of Cybersource’s Global Fraud Report 2022 certainly seem to substantiate these numbers, reporting that, globally, fraud costs have increased for a second consecutive year.

It also reports that phishing/pharming, card testing, identity theft, and first-party misuse remain the most prevalent fraud attacks, each affecting more than 3 in 10 merchants globally. Alarmingly, 9-in-10 merchants have experienced at least one fraud management challenge and merchants are struggling to identify and respond to fraud attacks.

Yet most merchants have not increased the share of revenue they spend to manage the problem.

The challenge is that merchants deal with an overwhelming number of transactions every day, and identifying fraud signals can be hampered by systems that not only generate false positives, but inadvertently reject loyal customers.

So, how can you effectively fight fraud while approving legitimate transactions nearly instantaneously to maintain a frictionless payment journey and keep revenues flowing?


Fighting fraud with Payment Orchestration

Payment Orchestration gives merchants the chance to layer multiple fraud-fighting solutions together, but this layered approach is not only about piling multiple-point solutions, it’s about synchronising them to achieve the best output possible. With Payment Orchestration, fraud management can be optimised by using multiple providers and data sources, aggregating these providers and sources into a single decision engine.

These advanced fraud prevention solutions mean transactions can be analysed in less than a second, evaluating data from current and past transactions to see if they are genuine or fraudulent.

Our platform, Velocity, uses the latest fraud management technology and data from 141 billion+ transactions to help merchants across verticals increase acceptance rates, lower review rates, and boost their bottom line.

Keeping you one step ahead

Merchants can’t afford to be complacent when it comes to fraud - criminal tactics are constantly evolving. Fraudsters are not new to technology and have multiple attack patterns they can rely on. They also share information amongst themselves at a pace when compared with financial institutions, banks, and merchants. They can learn how to bypass one or two features in an organisation’s fraud prevention strategy if they recognise weak spots or a vulnerability they can take advantage of.

Without Payments Orchestration, transactional data is spread over multiple gateways and payment providers, which makes it significantly harder to detect fraud. With it, merchants can stay one step ahead at all times thanks to the real-time visibility and analytics it provides. This stops potentially fraudulent payments in their tracks before they are processed.

In the final part of our fundamentals of Payment Orchestration series, we explore a common type of fraud: the time-consuming and costly issue of chargebacks, and look at how it’s possible to reduce chargeback volumes through the automated transaction reviews our platform offers.


Boost revenue and simplify operations with our Payment Orchestration solution


Elevate your business with our Payment Orchestration Platform. Streamline operations, access global providers, and optimise processing times. Benefit from intelligent routing, fraud prevention, and real-time analytics. Request a demo to revolutionise your payment systems.