How can I find the balance between conversion and fraud prevention?
If you’re a Premium user, you can make a data driven decision to find the right balance between conversion and blocking fraudulent payments. You can do so by adjusting the blocking threshold.
Adjust blocking threshold
In order to adjust your blocking threshold select Revenue & risk > Risk Profiles > Selecting the risk profile you would like to edit > Risk Rules > Block > Machine learning: fraud risk. Once you've selected the machine learning: fraud risk rule, click 'Adjust block threshold.'Â
Before changing your blocking threshold, you'll see an estimated block rate based on the risk profile's historical data.Â
You can use the threshold as a cutoff point to block based on the risk classification produced by the Adyen machine learning rule. As with any risk rule, there is always a tradeoff between true positives (frauds) and false positives (genuine customers). Blocking all transactions with a ‘Very High’ classification would result in low false positive rates and potentially miss complex fraud cases. Blocking all transactions with a ‘Low’ classification would block most fraud cases but comes at the expense of more false positives.Â
Tolerance levels
The tolerances are described below and can be adjusted any time.
Tolerance
Description
How to choose
Low
Block low risk payments and above.
Select this if you aim to block most fraud cases, at the cost of more false positives. This threshold is best used for high cost-of-fraud businesses (i.e. where the cost of one case of fraud wipes out the gain from many genuine sales), or when you are close to entering a scheme monitoring program (i.e. you can justify having more false positives to prevent entering the scheme program)
Medium
Block medium risk payments and above.
More balanced approach that tends to catch most fraud. Depending on your business this may still miss too much fraud or block too many payments.
High
Block high risk payments and above.
Default approach, which strikes the balance between blocking likely fraud cases, with acceptable false positives. Depending on your business this may still miss too much fraud.
Very High
Block only very high risk payments.
Select this if you only want to block very certain fraud cases, and hence aim to maximize your authorization rate.
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