The True Cost of Fraud for Merchants
Payments fraud causes reputational damage, increases the risk of non-compliance with key regulations and negatively impacts the overall consumer experience. Traditional fraud mitigation methods have increased false positives and are not well-suited to the changing dynamics of the eCommerce landscape.
- 38% of merchants lost at least 6% of their revenue to payments fraud in 2020
- 59% of merchants saw an increase in eCommerce fraud in 2020 relating to card-not-present transactions
- U.S. retail and eCommerce merchants paid $3.75 for every $1 of fraud
- The cost of fraud for U.S. merchants has increased by 19.8% since 2019
The Problem with Traditional Machine Learning for Fraud Management
Traditional machine learning lacks the adaptability, automation and transparency merchants need for successful fraud management.
- Traditional machine learning models are unable to evolve
- The specialized skills needed to combat model degradation are increasingly difficult to come by
- Merchants risk unequal treatment toward consumers
- This leads to higher fraud losses and costs for merchants
Improve Your Machine Learning to Work Smarter for Your Business
Traditional machine learning models have limited value in today’s age of change. ACI Worldwide’s incremental machine learning is a new approach to fraud management empowering merchants to adapt to the changing eCommerce landscape.
- Leverage historical and live data to recognize behavioral changes and dynamically respond to changes
- Automatically make small adjustments to models to enable them to maintain and improve over time
- Augment and refresh models in real time based on streaming data
- Create fewer chargebacks, false positives or disruptions — all without manual intervention
Incremental Machine Learning for Fraud Management
Within the first three months of launch, ACI’s incremental models outperformed traditional models by more than 10% and merchants saw
85%
Fraud Detection Rates
3:1
False Positive Rates
75%
Reduction in Fraud Losses
5x
Longer Scoring Model Performance
RELATED SOLUTIONS
Safe and Secure
ACI Worldwide has a wide range of fraud prevention capabilities that enable merchants to achieve industry-leading performance.
ACI Payments Orchestration Platform
Design payment flows that connect to multiple payment providers and maximize customer conversions using ACI Worldwide’s payments orchestration platform
ACI Fraud Management for Merchants
Reduce chargebacks, fraud and false positives while increasing conversion with ACI’s machine-learning driven merchant fraud management.
ACI Secure eCommerce
A true payments orchestration platform with sophisticated real-time fraud prevention capabilities, advanced business intelligence tools and access to an extensive global network of acquirers and alternative payment methods
Strong Customer Authentication Compliance
Secure electronic payments and reduce your PSD2 compliance burden with ACI Worldwide’s strong customer authentication solutions
Chargeback Protection and Management
Don’t allow chargebacks to impact your revenue — safeguard your business with ACI’s chargeback protection service
Payment Analytics for Merchants
Omnichannel payment analytics with customer dashboards, reporting and more to help merchants maximize profits with actionable data insights
Tokenization
Protect your customer data and reduce PCI compliance obligations with single and multiuse tokens
Risk Analysts
Dedicated support from a global team of experienced fraud and risk analysts, working closely with merchants to develop and manage tailored, real-time risk strategies
Related Resources
eBook
Merchants
Exploring the Next Generation of Fraud Prevention for Merchants
In this eBook, get a comprehensive look at incremental learning, a new, award-winning and patented machine learning capability ideally suited to the new normal of constant change.
Webinar
Merchants
Find a New Ally in the Fight Against Fraud: Machine Learning
In this on-demand webinar you’ll see how machine learning can increase conversions by leveraging data culled from millions of transactions, speed transaction approvals to deliver a superior customer experience, detect emerging fraud threats and patterns faster than ever before and support the safe acceptance of real-time payments.
Podcast
Merchants
Artificial Intelligence Project of the Year: Why Machine Learning Is the Newest Leader in Fraud Prevention
Now lauded by experts as the newest leader in fraud prevention, machine learning is fast becoming an essential tool in mitigating cybercrime — but not all machine learning models are built the same.
