OPERATIONAL TECHNIQUES
REAL TIME OPERATIONS
Authorizations are requests from a merchant to the consumer's issuing bank to ensure the cardholder has sufficient money or available credit to cover payment while reserving the funds for the purchase if available.
CREDIT CARD BIN CHECKS
BIN - Bank Identification Number, also known as the Issuer Identifier Number (IIN), refers to the first six digits of a payment card's Primary Account Number (PAN).
CASE MANAGEMENT (CSR INTERFACE)
Case Management, also known as CSR Interface, is used to manually review transactions, perform analysis on past fraudulent transactions and to perform forensic analysis.
CHARGE VERIFICATION
Charge Verification is the process of merchants physically contacting the customer's issuing bank or the card association to validate the cardholder's information.
CHARGEBACK RECOVERY SERVICES
Chargeback Recovery Services may also be known as Chargeback Revenue Recovery or Chargeback Representment Services.
CHARGEBACK REPRESENTMENT
Chargeback Representment is the process that allows a merchant to present evidence to the issuing bank that a chargeback is not warranted.
CONSUMER ALERTS
Consumer Alerts services may also be known as consumer notifications, transaction alerts, login alerts, or event confirmation notifications.
HOT LISTS, WARM LISTS, POSITIVE LISTS
Lists identify returning customers, hot lists are for consumers that have had charge-backs on previous orders, warm lists are for habitual returners or consumers with customer-satisfaction problems, and positive lists identify the repeat good customers.
INTERNAL RULES
Internal Rules, sometimes called heuristics, are simple logic statements to see if a condition is present and attempt to catch potentially risky orders.
MANUAL REVIEW
Manual Reviews can be performed in-house or by a third party vendor. Manual Reviews require staff members to perform manual checks on orders that were not low risk enough to be auto-accepted, and not high risk enough to be auto-declined. Manual Reviews are used with these “in-between” orders to determine if they are fraudulent and to try and convert the ones that aren’t.
MERCHANT MONITORING
Merchant Monitoring refers to the continual, active monitoring of a merchant’s behavior as well as sales, chargeback and other patterns that may fluctuate after initial onboarding.
ON-SITE MERCHANT INSPECTIONS
Merchant On-site Inspections may also be called On-Site Surveys, Merchant Inspections or Merchant On-Site Investigations.
OPERATIONAL PROVIDERS
Operational Providers have the capacity to become the hub of a risk architecture. They are very diverse in terms of the various operational processes where they are applicable and provide value. They are equally, if not more, diverse in terms of the specific point tools and fraud prevention techniques that are supported through their operational platforms.
PHISHING SIMULATION SERVICES
Phishing Simulation services, also known as Spear Phishing Simulation services, are used by organizations of all types that want to reduce their exposure to ransomware, data breaches, account takeover and other attacks that often start with phishing.
RULE ENGINES
Rules Engine - AKA Decision Engine, Decisioning Software, Management Software, Order Management
SPIDER AND MERCHANT WEBSITE MONITORING
Web Spiders are also known as Crawlers, Bots, Ants or Scutters and the process of web data extraction may also be referred to as Web Crawling, Web Scraping or Automatic Indexing.
VELOCITY OF USE
Velocity of use counts the number of transaction attempts associated with common data elements, such as a credit card number or address, as a means of looking for suspicious behavior.
VELOCITY OF CHANGE
Velocity of change counts the number of changes between data elements on new transactions with previous ones as a means of identifying suspicious behavior.
