It’s no secret that false declines are, and have been, one of the biggest problems for merchants in the past few years. While attempting to prevent fraud on their digital channels, many different merchants end up wrongly declining legitimate consumers because of suspected fraud.
This happens for a number of reasons, one of which is that some merchants use strict, inflexible fraud prevention systems that fail to recognize legitimate consumers even when one simple element of data changes in their transaction. If, in the checkout process, a consumer changes a given field to something that doesn’t match their typical order, a rigid fraud prevention tool with simple, pre-constructed rules will decline that consumer, even if they are legitimate.
But, with the release of the 3-D Secure 2.0 specifications, and the popularity of big data and analytics, data sharing and data intelligence have become popular, and effective solutions to this crippling problem.
Today, there is an astounding amount of data available for merchants and issuers. It’s up to them to use this data correctly and effectively. In the past, merchants and issuers relied on relatively simple data points in making authentication decisions. But now, they can leverage new sources of data and data intelligence to reduce fraud and false declines, and to keep their consumers safe and satisfied.
With increased data intelligence, and new data sources available to them, merchants and issuers will be more informed when it comes to their consumers. Instead of repeatedly checking the billing and shipping address of a consumer, they will, instead, analyze purchase history, device and behavioral information and relevant social media information to ensure that a given consumer is, in fact, a legitimate buyer.
Connect with Cardinal to learn more about data intelligence, and how Cardinal Consumer Authentication leverages new-age data points to reduce false declines, and subsequently increase revenue for merchants. With One Connection to Cardinal, we can Drive your Digital Commerce.