Acquiring Feature

Fraud detection

Clearhaus associates risk scores for each transaction in order to reduce our customer’s level of fraud and chargebacks.

How does it work?

Issuing banks create something called “fraud markings”. A card receives a fraud marking if it has been involved in a fraudulent transaction. We use these fraud markings to assign a risk score to each transaction that goes through our system.

The risk score depends on two factors:

  1. Whether the card is being used in the same online shop where it was first used in a transaction that had fraud markings, or
  2. Whether the card has been involved in transactions that had fraud markings in two other online shops.

When signing up with Clearhaus, we will automatically apply our fraud detection procedure for your online shop.

fraud

How does fraud detection benefit me?

If a transaction has a risk score above a certain threshold, we will decline the payment. This is a way to reduce fraud levels in our customers’ online stores. As a result, our customers will receive fewer chargebacks and save money.

Our risk assessment procedure can be adjusted to your business and risk strategy. If, for instance, you’re doing your own fraud control, we will not reject transactions based on our risk scores in your shop.

Note that a rejection of a transaction with a high risk score can be avoided if 3-D Secure is applied to the transaction.

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