Regulation & Compliance
January 13, 2025
According to Ethoca, the value of transactions falsely rejected by US card issuers in 2014 was $118 billion, of this value only $9billion constituted actual fraud. This is a ratio of 13:1. So why do companies continue along the path of declining and losing legitimate transactions due to suspicions of fraud?
False positives aren’t just detrimental to a merchant’s bottom line, yes, the knock-on effect of a falsely declined transaction is the initial loss of sale, however the long-term effects include damages to their reputation, an unsatisfactory user experience and ultimately, loss of customers.
Read more here.
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