While marketers typically spend vast amounts of money to increase customer acquisitions, fraud prevention can undercut those efforts. According to a recent 41st Parameter® study, average card-not-present declines represent 15 percent of all transactions; however, one to three percent of those declined transactions turn out to be false positives, equating to 1.2 billion dollars in lost revenue annually.
Marketers can avoid unnecessary declines and create a seamless customer experience by communicating campaign plans to the fraud-risk team early on and coordinating marketing and fraud-prevention efforts.
