All merchants in 2024 are concerned about and have plans in place to manage fraud related to their consumer payments and loyalty ecosystems. The most frequently stated struggle for fraud management teams is how to manage new areas of fraud to prevent lost revenues, but this is not where the only focus should be; successful programs do this while mitigating friction in their consumer experience. The friction caused by fraud programs can not only damage the consumer experience, but it can even drive away consumers permanently from a brand. W. Capra is adept at engaging with our clients and using our in-depth industry knowledge to provide actionable insights and fraud program management to keep fraud low and ensure legitimate transactions are not erroneously flagged.
Nathan Rao, Senior Consultant at W. Capra expounded, “W. Capra is comfortable both being the team or being part of the team for any client and will engage at any stage in the Fraud Management life cycle, from documenting requirements and vendor selection to helping understand your rules, data, and creating actionable, effective insights. W. Capra uses its in-house data science capabilities along with a variety of review processes to verify that fraud controls are a fit for client needs and minimize consumer friction.”
Why not just let my fraud vendor manage my program?
While it may seem attractive to let your fraud vendor manage your fraud program, especially if they have guarantees against chargebacks, losing control over your fraud environment poses risks to your bottom line. Handing over control of the user experience, in the name of chargeback guarantees or otherwise, can lead to overly stringent fraud rules that cascade to a consumer experience steeped with friction and transactions being declined with a zeal that doesn’t match your fraud program goals. Rao added, “W. Capra aims to provide a balance between fraud prevention and positive consumer interactions based on stated client requirements with constant transaction monitoring and modeling to stay abreast of new fraud types and to keep clients’ fraud levels consistent. We have seen merchants who allow fraud vendors to manage their fraud programs experience declines in consumer transactions as large as 20% due to the friction those vendors introduce. Those consumers who are erroneously declined then often abandon a brand completely, which is obviously a worst-case scenario for a program designed to maximize legitimate revenue.”
How and when to engage W. Capra for fraud program help?
W. Capra can use its wealth of experience to engage with clients at any stage of their fraud management program lifecycle. Rao said, “W. Capra has worked across business units to elicit requirements and select fraud vendors all the way through to implementation and ongoing fraud program managed services, either as a participant with client internal teams or to be the team.
Nathan Rao is passionate about Fraud Management program selection and operations for W. Capra clients. For further discussion, contact Nathan at [email protected]