CHAPTER 2 Planning For CyberSource Fraud Manager

This chapter explains the following information:

• Objectives to set for your CyberSource Fraud Manager program
• Issues to consider when you plan your CyberSource Fraud Manager program
• Resources you must allocate to your CyberSource Fraud Manager program

The end of the chapter includes a checklist that you can use as you plan your CyberSource Fraud Manager program.

Setting Goals

Part of implementing any risk management tool is understanding the tool's capabilities. CyberSource Fraud Manager can be implemented in several ways, depending on what you want it to do. Goal-setting assures your implementation will meet your design plans.The following are some sample goals:

• Block known fraudulent or chargeback users from future orders
• Block orders over a specific dollar threshold
• Block users with multiple ship-to addresses on the same credit card within a one-week period

Identifying Customer Behavior

CyberSource Fraud Manager allows merchants to screen common risky behavior through Velocity checks, Hot List checks, and Boolean checks. Example Hot List checks and Boolean checks are provided with your setup CD. Configuring the Velocity checks or Hot List checks or adding Boolean checks requires knowledge of favorable and suspicious customer behavior. Consider the type of fraudulent transactions encountered by your business and others in your industry. Determine how the point of sale type influences the type of fraud you experience.

Choosing an Acceptable Level of Risk

CyberSource Fraud Manager allows you to make adjustments as risk situations are encountered. Examine the behavior of your good customers as you make sales conversion planning. Your risk-to-sales conversion strategy should include finance and accounting expertise.

Functional Considerations

This section discusses issues and tasks regarding the implementation of your CyberSource Fraud Manager program.

Building the CyberSource Fraud Manager Integration

Implementing the fraud fields depend on the point of sale type that accepts transaction requests for fraud checks. The point-of-sale types are either a sales or service representative in a physical retail or support location or an automated processor. The point of sale can be a Web-based store, self-service kiosk, or telephone-based service.

If your company sells items or services through a Web store, the end user does not see the fraud reason codes. Remap the fraud reason codes to the graphic user interface (GUI) of the Web store to indicate the transaction request was declined. The GUI should display the fraud reason codes to your merchant's customer support representatives, but not to the customers. Set and display generic messages to the customers, such as "Your order cannot be processed at this time. Please process your order by calling Customer Support at 800..."

Merchant Bank and Credit Card Associations

Consult your merchant bank and credit card association about the card types you accept, since they might impose rules that you need to consider.

Resource Considerations

This section describes issues that your must consider when you assign resources to your CyberSource Fraud Manager program.

Customer Support

For a staffed point of sale, if a transaction is flagged by a Hot List, Velocity Check, or Boolean Check, do one of the following:

• Provide transaction feedback in user-oriented terms to the operator through the transaction client
• Provide rules in the order entry and transaction client interface, calling application, and order-entry software so that flagged transactions are processed as your business rules require.

For an automated point of sale, if a transaction is flagged by a Hot List, Velocity Check, or Boolean Check, do the following:

• Map the result codes back to the calling transaction client application to allow or refuse subsequent transactions
• If the second transaction request violates a fraud check, refuse subsequent transactions

If a transaction violates multiple Hot List and Boolean checks, consider the following:

• Follow a procedure for processing flagged transactions

  The procedure for your support team should include what actions are necessary, such as displaying the proper GUI response. Different flags might prompt different responses.

• Automate the response for a flagged transaction

Checklists

Use the following checklists as you plan your CyberSource Fraud Manager program.

	Get Merchant ID and password
	Download documentation from the CyberSource Support Center

	Assign a project team lead
	Assign a sales or marketing lead
	Assign an engineering lead
	Assign a customer support lead

	Identify fraud patterns in your company and your industry
	Determine your acceptable level of risk
	Consult your merchant bank and credit card association about card types you accept
	Train your customer service team
		Scripted or automated response for flagged transactions
		Retain dissatisfied customers