The bad guys don't care who pays the bill
Regardless of who commits fraud, one of two parties will pay for it: merchants or financial institutions. Fraudsters don’t care who picks up the tab, but if you’re one of the two parties being held liable, chances are you have significant interest.
Fighting fraud is a delicate balance between limiting the financial loss to merchants and financial institutions while increasing card users’ spending confidence. Studies have shown that when valid transactions are denied due to overly strict fraud controls, cardholders tend to switch cards and use cards they know will work.
“An estimated 127 million legitimate transactions are denied each year because of a false suspicion of fraud. The rate of false-positive declines is over three times that of existing-card fraud: In 2014, 4.42 percent of customers were affected by existing-card fraud, representing a loss of $9 billion.”1
To help illustrate the fraud problem, each quarter, the major card brands take a look at fraud on a global scale. They look at three different categories:
- Worldwide fraud
- Fraud in the United States
- Fraud from all processors
Within these categories, there are two primary metrics that Vantiv is most concerned with: gross fraud and net fraud. The combination of merchant and financial institutions makes up gross fraud where net fraud only accounts for what financial institutions are held liable.
This last quarter revealed that the Vantiv Omnishield Suite performed best-in-class for gross and net fraud across all categories. And that’s great news for the financial institutions that work with Vantiv. But what's your experience like?
Now is the time to reevaluate how well your fraud system is performing. When it comes to insulating yourself against fraud, why wouldn’t you want better? Discover the advantage of Vantiv Omnishield. Start with a look at the infographic, "Fraud happens: mitigate your risk", available right here. Then find out how we can help your financial institution by calling us today.
- https://www.javelinstrategy.com/coverage-area/overcoming-false-positives-saving-sale-and-customer-relationship , Overcoming False Positives: Saving the Sale and the Customer Relationship, © 2015 GA Javelin LLC is a Greenwich Associates LLC company.,