Third Party Fraud
HostedPCI works with third-party fraud service providers in order to allow our merchants the ability to make the best decisions regarding the transactions they collect. HostedPCI’s API allows merchants to pass fraud detection parameters during the Authorization and Sale Transaction in order for fraud detection to occur. Fraud detection parameters are sent along with the transaction parameters through the API, HostedPCI will first send the transaction details to the Fraud provider in order to evaluate the transactions before moving forward to the gateway. Once the transaction is validated HostedPCI will provide the result to the merchant in order to make the final decision before continuing with the payment.
Third-Party Fraud prevention service is implemented to detect fraudulent and malicious actions from taking place in payment processing. The investment into this service provides the Merchant peace of mind by decreasing chargebacks and leading to higher rates of transaction conversion. Unlike Gateway fraud, which only checks CVV and AVS, Third-Party Fraud services are a lot more thorough. Third-Party Fraud uses artificial intelligence, device and user information, and multiple data points to identify the intent of the transaction. Some examples of these extra steps include recognition of IP address, identifying if a proxy server is being used and if the device being used is a trusted one.
HostedPCI’s most used third party fraud service is Kount. Kount works as a two-step flow, the first is an auth request where HostedPCI sends the credit card information to Kount for analysis. Once the credit card is analyzed and the response is sent back to the Merchant they can then decide whether they would like to Capture the funds or not.
Kount allows HPCI to pass mapped values AVST, AVSZ, CVVR, and UDF for verification purposes. AVST, AVSZ, and CVVR are used for passing address verification and CVV verification from the payment gateway to Kount. UDF stands for User Defined Fields which can be added to the call in a similar way to AVS mapping. Since the code values from the gateway are different from Kount, every call would need to be mapped in order to pass successful values between the payment gateway and Kount. For additional information regarding the Fraud detection parameters please take a look at our ‘Fraud Parameter’ Documentation.
Benefits of Third-Party Fraud Service
- Get an in-depth overview of each transactions, in order to reduce the likelihood of CharbeBacks.
- Seamlessly integrates within the payment flow with no additional burden to the customer.
- Merchants’ transaction authorization rate will see a significant increase.
- Can be activated anytime by simply enabling a setting.