Fraud prevention service (ReD)

Fraud prevention service (ReD)

▼ Fraud prevention service (ReD)
Fraud prevention service (ReD) is a proven security service that enables the detection of fraudulent transactions all over the world. This service can detect suspicious transactions through monitoring “user information” and “order content” that are stored on your server.
We provide Fraud prevention service (ReD) as an optional security service to protect your customers from credit card fraud.

Advantages of implementing Fraud prevention service (ReD)

  • ・It gives you the ability to detect and prevent fraud in real time, thus minimizing the risk of chargebacks.
  • ・By implementing Fraud prevention service (ReD), you reduce operations workload caused by fraud prevention countermeasures.
  • ・Fraud prevention service (ReD) is an optional service of our Multi-Payment Service platform, thus, our merchants are able to facilitate implementation process of the service and to reduce its introduction costs.

Service operation flow

ReD makes real-time decisions regarding fraudulent transactions. It returns “ACCEPT” / “CHALLENGE” / “DENY” following the risk tolerance as a decision whether to allow the transaction or not.

  • Purchase information, Fraud screening is conducted, Decision result is sent…Purchase information, Fraud screening is conducted, Decision result is sent
Data flow of the token payment
  1. Purchase
  2. Card payment is conducted (EntryTran, ExecTran)
  3. Fraud screening is conducted (ExecFraudScreening)
    * Details of ②transaction are specified
  4. Customer information is linked with card details and sent
  5. Decision result is sent
    ACCEPT/CHALLENGE/DENY
  1. Decision result is sent
    ACCEPT/CHALLENGE/DENY
  2. Product delivery is determined on the base of decision result

【Operation example】

ACCEPT→transaction OK
CHALLENGE→the determination, whether to conduct transaction or not, is based on the examination
DENY→transaction NG

Mechanism of fraud prevention

ReD examines each card transaction (attribute ACCEPT / CHALLENGE / DENY) in real time by running it through 5-level filter based on the 6 kinds of users information.

Mechanism of fraud prevention

Plans overview

You can choose from 2 plans.
One plan is Basic that can be easily used by all our merchants, another - Enhanced that represents a high-end model tailored to specific merchants.

Basic Enhanced
Target merchant ・Those merchants whose chargeback ratio tends to rise
・The number of fraudulent use incidents is rapidly increasing
・Those merchants whose chargeback ratio is higher
than 1%
・Merchants have already taken measures against fraud
Plan Overview Return of decision result API API
Fraud decision
rule
Common (best practice) rule Original (custom) rule for each online shop
Administration
screen (*)
no ok
Notes Certain results are expected to be achieved right after
implementation, however, fraud decision rules cannot be
adjusted by each merchant.
Fraud decision rules can be adjusted separately.
However, it will take about half a year to obtain highly
accurate decision results.

* A charge is applied per each contracted store.

Notes

  • ・The service does not guarantee 100% prevention of fraudulent transactions.
  • ・The service is limited to those online merchants that implemented the credit card payment method available on our Multi-Payment Service platform.

Reference)Examples of fraud decision rules

1. Global rules

  • ・Countries with high risk (card issuing country / billing country / receiving country / access origin )
  • ・Mail domains with high risk
  • ・ISP with high risk
  • ・Black lists of any kind (mail addresses / telephone numbers / devices / home addresses / card / etc.)

2. Common rules

■Merchandise

Transaction can be checked before goods delivery, so “CHALLENGE” is attributed in general.

  • ・Use of cards issued overseas
  • ・Multiple cardholder names are used for the same card number
  • ・The same card number is used by multiple emails
  • ・Use of multiple cards or authorization from the same device
  • ・Goods delivery to multiple home addresses from the same mail address
  • ・The same mail address is used by multiple devices, multiple user IDs and multiple names
  • ・Multiple expiration dates are used by the same card number
  • ・Multiple orders by the same telephone number
  • ・Using multiple mail addresses and user IDs by the same devices
  • ・Access from devices other than Japanese environment
  • ・Multiple IP addresses are used by the same mail address
  • ・Orders including high risk products (Users of Enhanced Plan are required to register in advance)
  • ・Use of forwarding company
  • ・Billing country, county of access origin and cars issuing county do not match (*)
  • ・Multiple shipping countries are indicated for the same card, the same device and the same mail address
  • ・Shipping country, billing country and card issuing country do not match (*)
  • * For merchant shipping overseas

■Other than merchandise

In case of digital content sales, fraud decision must be made immediately, so “DENY” is attributed to the transaction in general.

  • ・The same card number is used by multiple emails and devices
  • ・The same mail address is used by multiple devices, multiple user IDs and multiple names
  • ・Multiple expiration dates are used by the same card number
  • ・Delivery to multiple home addresses from the same mail address
  • ・Use of multiple cards or authorization from the same device
  • ・Multiple orders by the same telephone number
  • ・Using multiple mail addresses and user IDs by the same devices
  • ・Use of multiple cardholders’ names for the same card number
  • ・Multiple home address of billing for the same telephone number

3. Industry-specific rules

  • ・Multiple orders from the same card number
  • ・Total amount is exceeded by single / multiple purchase from the same card number
  • ・Multiple orders from the same mail address
  • ・Total amount is exceeded by single / multiple purchase from the same user ID
  • ・Total amount is exceeded by single / multiple purchase from the same mail address
  • ・Total amount is exceeded by single / multiple purchase from the same device

Reference)Fraud prevention effect

We aim to reduce operations by narrowing down the CHALLENGE decision result (target of fraud examination) that is more accurate than the industry standard value.

Fraud prevention effect

(*) Reference: publication of Fraud Prevention Conference “Merchant Risk Council 2014” held in the United States.

Reference)Examples of ReD Shield implementation

Industry

  • Airline Companies with international flights
  • Fashion brands
  • Major department stores
  • Major digital content companies
  • Overseas payment service providers

Number of implementations

  • Merchants: a few thousands
  • Payment service providers: more than 30