Risk management for minimising payment defaults and fraud

E-commerce consumers generally prefer payment methods which incur higher risks of non-payment for you as a merchant. Studies indicate that the buying process is often aborted if customers cannot find their preferred payment methods. But even supposedly secure payment methods, such as credit card payments, may lead to chargebacks and costly subsequent processes. The Protect module on the PAYONE Platform provides you with professional and fully integrated risk management. A variety of proven checks – customisable to your individual requirements by means of intelligent sets of rules – help to significantly reduce payment defaults and fraud in your online offer.

Payment with integrated risk management

The Protect module offers comprehensive risk checks and automatically analyses all payment processes in the background to detect potential fraud patterns and risks of non-payment.

Fraud prevention management

You have the option to intelligently combine the different checks for fraud protection using editable sets of rules and to attach them to certain conditions such as the shopping cart value.

Control payment methods in your checkout by credit rating

Use credit assessments to automatically hide payment methods with an elevated default risk in your checkout to restrict the choice for customers with a low credit rating to safe payment methods.

Easy configuration

Intuitive user interfaces allow you to adapt almost all checks to your individual requirements via the simple and straightforward PAYONE Merchant Interface (PMI).

Plug'n'play integration

The ProtectEngine can be activated with just a few clicks and immediately starts monitoring all transactions. For controlling the offered payments methods based on credit rating, PAYONE provides you with a large number of extensions for the leading e-commerce systems.

Payment and risk management from a single source

The Protect module comprises a variety of risk management services consisting of plausibility checks, address checks, credit assessments, mechanisms for checking the identity of the customer as well as multi-level checks for fraud prevention. In order to optimise the efficiency of your payment default minimisation and fraud protection efforts, you can choose to combine these services or use them individually, depending on your specific requirements. All checks are carried out in a fully automated manner and take just a few milliseconds. Highest security standards and state-of-the-art technologies ensure maximum security, performance and availability. Learn more about the PAYONE Platform.

Efficient fraud protection through intelligent sets of rules

Editable sets of rules allow customising all fraud protection checks, enable you to combine them intelligently to identify fraud patterns and to prevent payment defaults due to attempted fraud. All checks are performed in real time while the payment is processed. Which checks are used can be dynamically controlled by the sets of rules with regard to the selected payment method, the country of origin of the customer and the shopping cart value. If a risk indicator or a fraud pattern is detected during a check, the transaction in question may be either rejected or subjected to a follow-up check to further limit the risk potential. For card payments suspicious transactions can be verified automatically using 3-D Secure. The configuration is done centrally in the PAYONE Merchant Interface (PMI).

Dynamic payment method control by address and credit assessment during the checkout process

The risk management services for address and credit assessment allow to dynamically control the portfolio of payment methods in your online offer with regard to the customer's credit rating. Payment methods with an elevated default risk may be hidden automatically to restrict the choice for customers with a low credit rating to such payment methods deemed safe. In addition, the address data of the customer are automatically verified and corrected. PAYONE offers powerful shop extensions for payment handling including integrated risk management and dynamic payment method control for leading e-systems such as Magento, Shopware or OXID eShop. PAYONE cooperates with leading service providers in the field of the address and credit assessment to ensure optimal data quality.

Validating account details proactively and on an international scale with the bankaccount check

Direct debits and refunds to customer accounts are an essential part of pan-European e-commerce and require thought-out processes – after all, your customers expect quick and straightforward processing. To ensure this, valid account data is crucial: only valid account details can avoid payments being transferred to the wrong account and guarantee that the money reaches your customers without any problems and without delay. PAYONE's bankaccount check is used to check and validate the account data that your customers enter to your system – additional safety and a considerable added value also on an international scale. This check is a component of the Protect module to minimise payment defaults and fraud. In the event of any mistakes during checkout your customers will be prompted immediately which will help you to avoid cost-intensive subsequent processes. The system uses validated account data to execute your refunds to avoid high charges for return debit notes.

Integrated checks

The Protect module of the PAYONE Platform provides you with a variety of checks to minimise payment defaults and fraud. These include the following:

Address check basic

The address check basic checks whether the customer's address made up of the street name, house number, postal code and place actually exists. Typing mistakes or incomplete information are automatically corrected and supplemented. The address check basic is available for over 20 countries including the United States.

Address check person

The address check person includes all components of the address check basic and additionally checks whether a person, consisting of first name and/or surname, is actually known under that particular address. This check is only available for addresses in Germany.

Bankaccount Check

The bankaccount check validates the plausibility of the account data and is available for several countries in Europe. In order to guarantee smooth payment processes, the plausibility of the account data is automatically checked for payments via direct debit as well as for refunds via bank transfer.

BIN check

The BIN check uses the card number to check whether the country in which a credit card is issued corresponds with the country of the billing address specified by the costumer. Deviations may be an indicator of a fraudulent transaction.

BIN country filter

The BIN country filter enables you to selectively allow or exclude (whitelist/blacklist) credit cards issued in certain countries. This gives you the option to exclude credit cards from countries with a particularly high fraud risk to minimise the associated risks.

Credit assessments

The PAYONE Platform supports a variety of credit assessments. These allow you to effectively minimise payment defaults by restricting high-risk payment methods such as open invoices or direct debit to selected customers only.

Creditcard check

The Creditcard check validates the plausibility of the card data of credit and debit cards.

IP check

The IP check identifies the origin of an IP address and checks whether this country matches the country that the consumer entered for the billing address. Deviations may be an indicator of a fraudulent transaction.

IP country filter

The IP country filter enables you to selectively allow or exclude (whitelist/blacklist) customers whose IP address originates from certain countries. This gives you the option to exclude IP addresses from countries with a particularly high fraud risk to minimise the associated risks.

POS lock file

With over a million entries, the POS lock file is an efficient risk management service to minimise return debit notes. The POS lock file is fed with information from a number of well-known retail companies. When a return debit note is reported for a particular account, the companies report the account details to the POS lock file. The file also contains a large number of donations accounts as well as the details of all accounts featured on the so-called KUNO list, which includes information on stolen debit cards.

Velocity check

The velocity check is a very powerful and efficient tool for fraud prevention. It counts the number of payment attempts with certain characteristics such as IP address, card number, account number or e-mail address. If a certain number of purchase attempts is exceeded within a certain time period, these data are blocked (blacklisted) for a specified time period.

More options

The PAYONE Platform offers you further proven options for processing credit or debit card payments:

3-D Secure: Verified by Visa and MasterCard SecureCode

The security procedures Verified by Visa and MasterCard SecureCode help to guard yourself against fraud and chargebacks. Your advantage as a merchant is the so-called liability shift. Learn more about 3-D Secure.

Address verification service (AVS)

The address verification service (AVS) performs a check in the course of a transaction, to see whether the submitted customer information (name, address) correspond with the data that the credit card holder registered with the issuer. If the data do not match, this may be an indication of a fraudulent transaction. In this event, the transaction should be reviewed with particular attention or the customer should be offered an alternative payment method which provides more safety for you as a merchant in order to minimise the risk of chargebacks. The address verification service (AVS) is currently supported for American Express cards.

Use the entire range of PAYONE Platform services for processing payments.

Connection & integration

For connecting to existing e-commerce systems, the PAYONE Platform is equipped with comprehensive interfaces. You can use PAYONE's standardised extensions for an easy integration to leading shop and enterprise resource planning systems. Learn more about the integration to your systems and processes.

Request a quote now

Request your personal offer today. We would be happy to provide you with an individual offer that combines our many services in a package perfectly fitting your needs.

Payment module

Payment is the key success factor for an online offer. With BS PAYONE you can process all payment methods through a single platform and only one partner. This allows you to focus on your core business and to increase your sales.