Fraud hurts consumers and merchants alike, but cardholders put an even greater level of trust in their financial institution to protect them and resolve any negative consequences associated with fraud. In fact, an Accenture survey reports that 74 percent of respondents expect fraud protection from their financial institutions. The impact of fraud on financial institutions goes far beyond the concrete dollars and cents and into the even more nebulous and sensitive area of consumer trust.
Fighting fraud requires managers to have as much information as possible so they can aggressively identify problems and take steps to mitigate them. A good payments partner can be invaluable in providing information about fraud type (card present, card not present), the point-of-purchase transaction and the cardholder. This information can help formulate a solid fraud prevention strategy by leveraging processes, technology, and human expertise.
Making sure your fraud strategies include streamlined and highly effective processes is the first step toward reliable fraud mitigation. These processes should include, at a minimum, chargeback processing services for every point in the process, management of signature debit disputes, dispute collection from cardholders, and automated reporting of confirmed fraud to the card networks.