CHAPTER 1 Introducing CyberSource Fraud Manager

This chapter explains the following information:

• What CyberSource Fraud Manager is
• How CyberSource Fraud Manager works
• When to use CyberSource Fraud Manager

CyberSource Fraud Manager Overview

The CyberSource Fraud Manager enables you to create fraud detection checks to protect your business from risky transactions. Fraud Manager performs three different kinds of checks, described in the next section, to help protect your business from risky patterns and behavior.

You have the right to refuse any transaction request. For example, if a credit card fails an authorization request from the financial processor, you might not want to accept subsequent requests from that credit card user. Fraud Manager provides fraud detection that goes beyond authorization denials. If a transaction request fails any of the fraud checks applied by the CyberSource Fraud Manager, you can refuse the request.

Velocity Checks

Velocity checks quickly look for fraud over multiple transactions across all of your merchant accounts within the central database. Velocity checks are based on the number of times a transaction data element changes, not on how often it is used. You can set the Velocity check timeframe for your merchant base. The CyberSource Fraud Manager performs the following Velocity checks:

• Account number by expiration date
• Account number by ship-to street number and ship-to zip code
• Ship-to street number and ship-to zip code by account number
• Phone number by account number

Hot List Checks

Hot List checks are configurable lists of values chosen to be unacceptable based on your fraud and chargeback experience. The CyberSource Fraud Manager performs the following Hot List checks:

• Credit card account number
• Customer email address
• Customer phone number
• Customer ship-to address

Boolean Checks

Boolean checks are checks resulting in a true or false response. Your merchants can compare incoming transactions against these checks to flag undesirable transaction features. You can configure your own specific Boolean checks for one or all merchants. The CyberSource Fraud Manager package provides example Boolean checks.

Hot List checks and Boolean checks can be set up for one or all merchants.

How CyberSource Fraud Manager Works

This section provides an overview of how the CyberSource Fraud Manager works.

Fraud Check Work Flow

The CyberSource Fraud Manager lets merchants choose when they want fraud checks performed during transaction authorization. Fraud checks can be configured for each merchant ID within the CyberSource Payment Manager. Then the identical merchant ID established in Fraud Manager should be set for a matching fraud merchant ID in the CyberSource Fraud Manager. Merchants can choose from the following four work flow options:

• Pre-Authorization Fraud Check

  Avoids some transaction charges, since transactions caught by a fraud check are not sent to the merchant bank for authorization.

• Post-Authorization Fraud Check

  If the authorization is not approved by the merchant bank, the transaction is not submitted to the CyberSource Fraud Manager.

• Simultaneous Authorization and Fraud Check

  The fraud check and merchant bank processing are requested simultaneously and both results are returned.

• No Fraud Check

  Use if the merchant ID is from a trusted source, such as internal purchases.

When to Use CyberSource Fraud Manager

Use the CyberSource Fraud Manger for the following point-of-sale types:

• Automated, such as a Web store
• Self-service kiosk
• Call center staffed by sales or service representative

Combining CyberSource Fraud Manager With CyberSource Payment Manager services

You can integrate CyberSource Fraud Manager with the CyberSource Payment Manager. This integration allows you to maintain current merchant, transaction, and fraud data for your CPM system.

Note: For more information about the compatibility of CyberSource Fraud Manager services with the CyberSource Payment Manager, see the CyberSource Fraud Manager Setup Guide included in your integration package.

Payment

The following Payment services, through the CyberSource Payment Manager, are available to complement your CyberSource Fraud Manager program:

• Authorization/Capture
• Capture
• Settlement
• Return
• Reversal
• Void

For more information, see the PaylinX Administration Client Guide, available through the PaylinX Technical Support link on the CyberSource Support Center.