Many solutions exist. The list is long. Very long. Here are several. There are others.
- CyberSource, by Visa.
- MasterCard Integrated Processing Solutions.
- Accertify, by American Express.
- Paypal, fraud prevention solution.
- Falcon Fraud Manager, by FICO.
- MaxMind Fraud Score.
- Ogone, by Ingenico.
- Certissim, by Fianet.
- CyberMut, by Crédit Mutuel.
- ReD, by ACI universal payments.
How do these systems compare in terms of performance ?
To my knowledge there is no comparison because it is not yet possible to place these systems on the same test bed, integration being specific for these heavy, and thus expensive, platforms.
Choosing a solution. To select a fraud prevention system, an e-retailer consider the compatibility with the platform (Magento, Miracle, WooCommerce, in-house system), the compatibility with the gateway and the Payment Processor, and the integration costs.
In practice, these solutions are all based on rules whose activation contributes to score. If the sum of the score exceeds a threshold defined by e-retailer, then the payment is verified or, even, rejected.
Note , some of these rules are said to force the decision. When active transaction hit those rules, whatever the value of the others and of the totals, the transaction is directed to an endorsement, verification, or rejection.
Finally, the e-retailer will pay attention to two additional aspects.
- Does the solution fits properly in the sales process of the marketplace? The goal being that the expert analysts (who review the sales that are suspicious) base their judgment on the history of similar cases. Hence without an effective case management storage and retrieval system, the reviewing accuracy of the analysts will reduce.
- Does the solution enables automated access to the system? when the marketplace grows, the e-retailer who has chosen a platform will ensure that a programmable interface exists, which will allow (in the future) to automate the management of the system and, thus, to scale.