High risk payments represent a growing segment of online transactions with some dedicated payment services providers, specializing in a field that offers a premium for those that better manage the risks involved. Processing high risk payments successfully depends upon shoring the risk, obviously the more information the decisions are based on, will improve results. Recently FUGU has teamed up with such payment processor to do precisely so.

In the current state of affairs the only way to shore the risk presented by high risk payments is by creating an Authorization Hold that insures the availability of the funds but does not defend against chargeback. The main form of shifting liability is through 3D Secure a costly process in every aspect, denying more than 15% of all transactions, creating more friction than needed to achieve better results.

Pre-Auth

In this case, FUGU is working with the payment gateway and presents the Auhtorization Hold and captures the hold sum automatically. The transaction is moved from the churn zone to the collaboration zone, as FUGU continues to communicate with the customer, getting to know more while collecting evidence against dispute including a full KYC process (see below).

After the payment, when the customer is most collaborative, in cases of high risk, FUGU contacts the payer with different forms of evidence validating the transaction. Using the following methods in various configurations, FUGU reduces denials by 70% and more:

These methods offer additional insights:

Customer receives a receipt for
signature
that is very familiar:


√ Validate mobile number
√ Measure cooperation
√ Device signature
√ Match IP and GEO –Location

Customer receives a request on the phone
authorizing a single use of the camera
to confirm identity:


√ Save as representment
√ Validate mobile number
√ Measure cooperation
√ Device signature
√ Match IP and GEO –Location

Customer is asked to submit a formal
ID as a form of identification: 


√ Save as representment
√ Measure cooperation
√ Device signature
√ Match IP and GEO–Location
√ Match Selfie with ID face

In extreme cases, customer may be
asked to submit a scan
of the credit card:


√ Save as representment
√ Measure cooperation
√ Device signature
√ Match IP and GEO –Location
√ Match First & Last Digits

In the unfortunate event of a dispute,
all evidences are available
with a click of a button


√ Selfie image
√ ID scan
√ Selfie ID match
√ Credit Card scan