In many industries, including the digital payments industry, smaller organizations can be over-reliant on manual processes. This could be due to staffing problems, cash flow issues or a combination of the two. For smaller online merchants in this industry, especially those who haven’t been doing business for very long, an over-reliance on manual review can be a significant problem.
Manual review is the process by which merchants manually examine their transactions for potential fraud before sending them for authorization. Whether it’s an issue of confidence in other processes or a money problem, a lot of smaller merchants lean towards manual review in their infancy. On the surface, there are some benefits. It gives these merchants visibility into every single transaction and allows them to seemingly create a system that will keep them fraud-free.
But falling into this trap can be damaging in the long-term. With the sheer volume of transactions that most online merchants deal with today, manual review simply isn’t a feasible fraud detection tool. There will inevitably be a backlog of orders, due to the relative speed it takes to conduct this practice. It can work as a tool in a larger fraud prevention strategy, however, as the main piece, it’s going to create problems.
Additionally, in relying heavily on manual review, online merchants are effectively squandering one of their greatest assets in the fight against fraud: the issuer. Since the issuer also holds a lot of meaningful data about the consumer, they should be a resource for any online merchant when they’re attempting to detect fraud.
The Cardinal Authentication Network has made this partnership a central focus. By connecting merchants and issuers, this network can pass all the meaningful data to the issuer, enabling them to make smart, efficient risk decisions.
In today’s world, it’s all about efficiency, which is why manual review is no longer a viable option. Due to years of constant innovation, the Cardinal Authentication Network can deliver outstanding results for online merchants hoping to win in the fight against fraud.
With the Cardinal Authentication Network, Cardinal puts Authentication First.