The Green Sheet Online Edition
March 3, 2019 • 19:03:02
Intelligent, real-time, any time fraud management
ACI Worldwide, a global electronic payment and banking solutions provider, enhanced ReD Shield, a solution designed to stop ecommerce fraud before it happens. Acquired by ACI in 2014, ReD Shield is part of ACI's Universal Payments (UP) suite of omnichannel solutions. The flagship product employs artificial intelligence and experienced risk analysts to provide commercial-grade fraud prevention to merchants across the globe, the company stated.
Survey data from global merchants that used ReD Shield between 2017 and 2018 revealed an increase in "buy online, pick-up in store" (BOPIS) fraud. "The benchmark survey found a 1 percent increase in fraud attempts, which is not that significant," said Michael Grillo, director of segment and solution marketing at ACI. "But BOPIS fraud attempts increased by 13 percent. Merchants with ReD Shield used machine learning and rules to identify invalid transactions."
Grillo additionally noted that consumers use an array of payment schemes and transact across multiple channels. Growing demand for fast order fulfillment within and across borders increases fraud risk and underscores the need for agile fraud management solutions.
Multi-tiered, customizable solution
ACI noted that ReD Shield's real-time, multitiered fraud intelligence platform is continuously updated, helping merchants, payment service providers and ISOs build extensive customer profiles with an in-depth view of good and bad transactions.
The platform uses machine learning models, predictive and behavioral analytics, customer profiling techniques, unlimited rules, and shared data to reduce fraud and chargebacks, protect revenues, and reduce false positives.
ACI described the solutions components as follows:
- Business intelligence portal: ReDi provides a window into changing fraud patterns and the ability to analyze trends from both a macro and individual transaction level. The portal enables merchants to monitor activities in near-real time or as long-term trends, providing valuable insight to internal fraud teams and stakeholders across an organization.
- ACI RFXTM: ReDi's retrospective screening capability enables users to re-screen live orders against new fraud intelligence in the ACI database. This enables merchants to block fraudulent activity at different points throughout a transaction's lifecycle and react more quickly to detecting and stopping fraudulent transactions.
- Expert risk analysts: ACI's risk analysts work in partnership with channel partners and customers, ensuring that the ReD Shield service is precisely tailored to individual business needs. Risk analysts manage all customized parameters and conduct in-depth risk assessments to mitigate changing patterns of fraud.
- Continuous support: Each ReD Shield customer has the support of a dedicated risk analyst, an account manager and a global customer support team. Team members keep customers updated on fraud trends and support customers throughout the world.
- Easy integration: ReD Shield is an integral component of ACI's UP eCommerce Payments solution. It can be integrated with existing payments infrastructures to protect transactions. Users can also access the solution through the ACI PAY.ON Payments Gateway, which connects to more than 350 acquirers and alternative payment methods.
Accuracy, efficiency, growth
Erika Dietrich, global director, payments risk at ACI Worldwide noted that EMV adoption is driving fraudsters to card-not-present, cross-channel fraud. "For example, fraudsters can use stolen credit card information to make a card-not-present purchase online and then simply walk in and pick up the item in-store," she said. "We'll see this trend continue to grow in the coming years, and merchants will need to pay more attention to their omnichannel fraud controls."
ACI stated the ReD Shield fraud prevention platform can help merchants in the following ways:
- Accuracy: ReD Shield combines customized rules with machine learning and predictive and behavioral analytics to pinpoint fraud, expose emerging trends and deliver risk analysis.
- Efficiency: ReD Shield reduces losses by cutting chargebacks, false positives and manual reviews, consolidating transaction data into actionable intelligence and enabling customers to meet multichannel demand.
- Growth: ReD Shield drives revenue and loyalty by reducing payments friction. This enables merchants to safely expand into new channels and adapt to emerging payment schemes.
Website: www.aciworldwide.com Contact: contact@aciworldwide.com
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