Customer-Not-Present (CNP) merchants are currently grappling with the problems of rising online fraud and the likelihood of Chip & PIN displacing even more fraud into CNP environments. However, the indirect costs of CNP fraud, particularly as the cost of fraud management, are proving to be as troubling for online merchants as the cost of fraud itself.

The costs of controlling CNP fraud are currently increasing rapidly, with a majority of online merchants using time-consuming and inefficient manual review methods to deal with this. With a survey by The Logic Group and CyberSource predicting a rapid growth rate of 36% in the e-commerce sector, it seems unlikely that many firms will be able to increase staff for manual checks in line with growing demand. Of the firms surveyed, only 28% expected to be able to increase manual reviewing staffing, creating a significant barrier to growth.

Fraud management also creates another cost in the form of rejecting valid transactions. Of the orders that are automatically rejected in an attempt to cut fraud, a massive 80% are ultimately accepted through manual screening. As such, it is certain that much valid business is being rejected. The question for CNP merchants is how to manage fraud effectively without incurring the substantial costs entailed by manual screening. Risk management protects against on-line credit card fraud by automatically detecting potential high-risk orders before they are accepted. The solution automatically evaluates orders in real-time, using sophisticated risk-prediction techniques that enable online merchants to confidently accept orders from previously rejected sources. The result is reduced fraud, increased sales and slashed manual screening costs.

The Logic Group’s The Logic Group’s RMLink is an integration application designed to provide a single integration point for both payment and risk solutions. Available as part of The Logic Group’s Managed Transaction Services, RMLink provides a framework to integrate The Logic Group’s transaction validation and processing product, Solve/SE with a range of leading risk and decision management applications.

Features and Benefits
•	Automatically detects potential high risk orders in real-time before they are accepted
•	Supports multiple merchant and sales channels – Internet, MO/TO, POS, IVR, UPT
•	Grow revenue – convert sales from previously restricted markets or product lines
•	Protect revenue – detect risky orders before they are accepted
•	Reduce Costs – reduce need for manual transaction screening
•	Reduce fraud – from customer-not-present channels and internal shrinkage
•	Maintain control – create custom fraud checks tailored to specific needs
•	Retain flexibility – adapt quickly to new fraud trends and strategies
•	Custom-build reporting – customise reports and continually monitor fraud trends
•	Built for the Business User – requires minimal IT intervention
•	Detect more fraud and speed orders through for best customers

Related Information
•	Online shopping set to soar in UK

To view the CNP Solution product sheet click here..
To view the RM Link Product Sheet click here..
To view the Online Fraud Survey results click here..