• Latest

Influencer Insights: High-risk Merchants Are at Risk of MATCHing

May 24, 2019
The ai Corporation extends collaboration with Shell to utilise cutting-edge Autopilot Machine Learning to protect Shell Card users from fraud

The ai Corporation extends collaboration with Shell to utilise cutting-edge Autopilot Machine Learning to protect Shell Card users from fraud

September 19, 2023
Sift Named a Leader in Fraud Detection, E-commerce Fraud Detection, and Risk-Based Authentication on G2

Sift Named a Leader in Fraud Detection, E-commerce Fraud Detection, and Risk-Based Authentication on G2

September 15, 2023
VISA Amends Its Dispute Management Guidelines for Merchants

Visa Research Highlights Emerging Fraud Schemes in Retail and eCommerce

September 15, 2023
World ID and the Hidden Dangers of Self-Sovereign Identities

World ID and the Hidden Dangers of Self-Sovereign Identities

September 15, 2023
Adversarial AI fraud attacks: The ticking time bomb of fraud prevention

Adversarial AI fraud attacks: The ticking time bomb of fraud prevention

August 17, 2023
5 Rampant Fraud Tactics for Merchants and Consumers to Stay Vigilant Against

5 Rampant Fraud Tactics for Merchants and Consumers to Stay Vigilant Against

August 15, 2023
Chargeflow Secures $14m in Funding led by OpenView to Fuel its AI-Driven Chargeback Automation Solution Market Expansion

Chargeflow Secures $14m in Funding led by OpenView to Fuel its AI-Driven Chargeback Automation Solution Market Expansion

September 20, 2023
SEON Raises $94 Million Series B to Address Exponential Growth of Online Fraud

Effectiv announces additional $4.5 million in seed funding

July 30, 2023
nSure.ai Awarded Second Patent Empowering Merchants to Strike Back at Fraudsters

nSure.ai Awarded Second Patent Empowering Merchants to Strike Back at Fraudsters

July 26, 2023
Dark Web Price Index 2023: Unraveling the Evolving Landscape of Underground Trade

Dark Web Price Index 2023: Unraveling the Evolving Landscape of Underground Trade

July 24, 2023
Justt survey show more people are engaging in chargebacks in 2023

Justt survey show more people are engaging in chargebacks in 2023

July 20, 2023
Ravelin releases Global Fraud Trends Fraud & Payments Survey 2023

Ravelin releases Global Fraud Trends Fraud & Payments Survey 2023

July 17, 2023
  • Contribute
  • Contact Us
  • About
  • Join Us
  • Advertise
Friday, September 22, 2023
Merchant Fraud Journal
  • Home
  • Articles
    • Chargebacks
    • Fraud Prevention
    • Influencer Insights
  • Resources
    • Recorded Webinars
    • Podcasts
    • Vendor Directory
    • eCommerce Fraud Reports
    • Training and Certifications
    • Jobs Board
    • Associations and Non-Profits
  • News
No Result
View All Result
  • Home
  • Articles
    • Chargebacks
    • Fraud Prevention
    • Influencer Insights
  • Resources
    • Recorded Webinars
    • Podcasts
    • Vendor Directory
    • eCommerce Fraud Reports
    • Training and Certifications
    • Jobs Board
    • Associations and Non-Profits
  • News
No Result
View All Result
Merchant Fraud Journal
No Result
View All Result

Influencer Insights: High-risk Merchants Are at Risk of MATCHing

by Bradley
May 24, 2019
in Articles, Influencer Insights

multifacetedgirl / Pixabay

Visa shifts its risk monitoring programs by toughening the qualifying thresholds for the Visa Chargeback Monitoring (VCMP), and Visa Fraud Monitoring (VFMP) programs. It aims at the introduction of stricter thresholds to ensure that merchants’ sales tactics and transaction processing are ethical.

The industries that will be most impacted by Visa’s changes are the same verticals impacted in 2015: adult goods, online gaming and gambling, discount health and online pharmacies, e-cigarettes and drug paraphernalia, weapons, and many types of travel services, i.e. booking tickets, renting a car online. These industries share characteristics such as multi-currency payment options and reliance on recurring billing. However, along with the growth of e-commerce –  an increase of 150 billion dollars since 2015 in the US alone (SalesCycle) – the scale of the phenomenon might be significantly greater.

Merchants with fully implemented chargeback mitigation strategies are not the most vulnerable, although they may be under closer scrutiny. It’s the merchants who are currently dangerously close to the 1% threshold that may find themselves in danger of joining the “high-risk merchants” category and by extension getting forced into Visa’s chargeback monitoring program. Once in the program, merchants will be hit with much higher third-party processing fees.

The lowered threshold will cause merchants who unsuccessfully set their risk management strategies to receive an increased number of penalties from acquirers. Soon, the stricter Visa rules will also cause increased caution from acquirers who will let go of some merchants that don’t qualify for close monitoring.

If the merchant gets listed on MATCH (Member Alert to Control High-Risk Merchants), they will need to sign up for a new processor facing an extended settlement period, high set up fee, and the requirement to maintain the reserves. While this may not be a headache for large companies, smaller ones can quickly encounter problems with their resource liquidity.

In addition to taking care of customer satisfaction and frictionless selling/refund processes, merchants must be prepared for fraudulent activities. With the constant evolution of fraudsters and the dark web, it is necessary to secure payment providers with anti-fraud tools (like Straal secured by Nethone Guard) that can mitigate risk at all stages of the sale. Using the full potential of data, merchants can shed light on the whole purchasing process and make predictions about who is making purchases with fraudulent intentions. Opportunities to watch customers online is limited – most often, merchants know as much about their customers as they choose to tell them. Therefore, it is necessary to use services that reveal additional information about each user. This is most effectively done via a process of picking up data and discovering patterns between variables unrelated at first glance. Due to the volume and the complexity of data, Machine Learning is the most useful analytical method to accomplish that.

One of the key values for online merchants that Nethone provides is comprehensive KYU analytics (KYU). Besides profiling, it combines external merchant data to provide a real-time decision accurately and transparently to closely detect fraudsters who damage merchants’ reputation with chargebacks. And that’s exactly why we decided to create Nethone – to bring KYU analytics to online merchants.


Hubert Rachwalski, Nethone, CEO

Mr Rachwalski is a strategy and operational excellence fanatic with broad experience as a management consultant (BCG) and some M&A experience. Even before becoming an IT consultant (PWC) he was an AI enthusiast writing his MA thesis on implementing quant methods in stock portfolio optimisation. Hubert is a graduate from HEC Paris (Hautes Études Commerciales de Paris) in Management/Strategy and Warsaw School of Economics in Quantitative Methods in Economics.

Tags: Influencer Insights
TweetShareSend
Previous Post

Credit Card Dispute Process

Next Post

Influencer Insights: An Interview with 80stees.com

Next Post

Influencer Insights: An Interview with 80stees.com

Our Latest Reports

2023 Consumer Payments Survey Report

2023 Fraud Trends Report

2022 Chargeback Consumer Survey Report

Fraud Prevention Tactics that Enable Exceptional Customer Experience

Addressing Payment Fraud and The Customer Experience in 2022

2022 Fraud Trends Report

ATO Fraud In Retail Report

2022 Customer Experience Report

3 Ways a Unified Chargeback Management and Fraud Platform Increases Revenue

Digital Trust And Safety Report: Combating the Evolving Complexities of Payment Fraud

On-Demand Webinars

New Trends in The Payments Ecosystem

Balancing Customer Experience and Fraud Prevention: What’s the Secret?

Stopping Fraud Across the Customer Lifecycle

Addressing Payment Fraud and the Customer Experience in 2022

 

Get the 2023 Fraud Trends Report

Search Our Site

No Result
View All Result

Our Sponsors

Featured Directory Listings

  • Signifyd
  • Microsoft Dynamics 365 Fraud Protection
  • PayRetailers
  • Spotrisk
  • CB-ALERT
  • Corepay

Our Sponsors

Fraud Industry News

The ai Corporation extends collaboration with Shell to utilise cutting-edge Autopilot Machine Learning to protect Shell Card users from fraud

The ai Corporation extends collaboration with Shell to utilise cutting-edge Autopilot Machine Learning to protect Shell Card users from fraud

September 19, 2023
Sift Named a Leader in Fraud Detection, E-commerce Fraud Detection, and Risk-Based Authentication on G2

Sift Named a Leader in Fraud Detection, E-commerce Fraud Detection, and Risk-Based Authentication on G2

September 15, 2023
VISA Amends Its Dispute Management Guidelines for Merchants

Visa Research Highlights Emerging Fraud Schemes in Retail and eCommerce

September 15, 2023

Connect With Us

Quick Navigation

  • Home
  • News
  • Join Us
  • About Us
  • Contact Us
  • Advertise
  • Contribute
  • Privacy Policy

The Payments Media Network

Merchant Fraud Journal
Payments Review

Privacy Policy

Our Privacy Policy
Our Terms of Use

Resources

  • Articles
  • eCommerce Fraud Reports
  • eCommerce Fraud Webinars
  • Training and Certifications
  • Jobs Board
  • Associations and Non-Profits
  • Podcasts
  • Vendor Directory

Popular Posts

  • How Does Two-Factor Authentication (2FA) Work?

    How Does Two-Factor Authentication (2FA) Work?

    0 shares
    Share 0 Tweet 0
  • How to File a Claim With FedEx + What To Do If Claim is Denied

    0 shares
    Share 0 Tweet 0
  • How to Fight PayPal Chargeback Fraud

    0 shares
    Share 0 Tweet 0
  • The 7 KPIs of Fraud Prevention Success

    0 shares
    Share 0 Tweet 0

Featured Vendors

  • Signifyd
  • Microsoft Dynamics 365 Fraud Protection
  • PayRetailers
  • Spotrisk
  • CB-ALERT
  • Corepay

Download the 2023 Fraud Trends Report

No Result
View All Result
  • About Merchant Fraud Journal
    • Interested in Contributing or Guest Posting to Merchant Fraud Journal?
  • Advertise on Merchant Fraud Journal
  • Articles
    • Chargebacks
    • Fraud Prevention
    • Influencer Insights
  • Contact Us
  • Download Addressing Payment Fraud and Customer Experience Report
  • Download Chargebacks Consumer Survey Report 2022
  • Download Evolving Complexities of Payment Fraud Report
  • Download Fraud Prevention Tactics that Enable Exceptional Customer Experiences Report
  • Download Merchant Fraud Journal 2023 Fraud Trends Report
  • Download the 2020 Chargeback and Representment Report
  • Download the 2020 Merchant Fraud Journal Vendor Guide
  • Download the 2021 Fraud Trends Report
  • Download the 2022 Fraud Trends Report
  • Download the 2023 Consumer Payment Trends Report
  • Download the 3 Ways a Unified Chargeback Management and Fraud Platform Increases Revenue Report
  • Download the MFJ 2022 Customer Experience Report
  • Download the MFJ ATO in Retail Report
  • Home
  • Job Dashboard
  • Join The Merchant Fraud Journal Community
  • Merchant Fraud Journal Advertising Agreement
  • MFJ Fraud Trends Report Giveaway
  • News
  • Post a Job
  • Privacy Policy
  • Resources
    • 2020 Chargeback Representment Guide for Merchants
    • 2020 Vendor Guide
    • 2023 Consumer Payments Survey Report
    • 3 Ways a Unified Chargeback Management and Fraud Platform Increases Revenue
    • Addressing Payment Fraud and the Customer Experience in 2022
    • Associations and Non-Profits
    • ATO Fraud In Retail Report
    • Balancing Customer Experience and Fraud Prevention: What’s the Secret?
    • Chargebacks Consumer Survey Report 2022
    • Digital Trust & Safety: Combating the Evolving Complexities of Payment Fraud
    • eCommerce Fraud Reports
    • eCommerce Fraud Webinars
    • Fraud Prevention Tactics that Enable Exceptional Customer Experiences
    • Fraud Prevention Training and Certifications
    • How to Build a Recession Proof Chargeback Prevention Strategy
    • How to Stop Fraud During the 2022 Holiday Season
    • Jobs Board
    • Merchant Fraud Journal 2023 Fraud Trends Report
    • Merchant Fraud Journal’s Fraud Trends 2020 Report
    • Merchant Fraud Journal’s Fraud Trends 2021 Report
    • Merchant Fraud Journal’s Fraud Trends 2022 Report
    • MFJ’s 2022 Customer Experience Report
    • New Trends in the Payments Ecosystem
    • Podcasts
    • Prevent High-Velocity Fraud Attacks During the 2021 Holiday Season
    • Stopping Fraud Across the Customer Lifecycle
    • Vendor Directory
    • Webinar – Addressing Payment Fraud and the Customer Experience in 2022
    • Webinar – Mitigating Fraud and Risk on the ACH Network
    • Win January Chargeback Disputes
  • Subscribed
  • Terms and Conditions

© 2021 Payments Media Solutions Canada Inc.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?