How WLPayments add value to the online payment transaction with data analytics and AI
In the dynamic realm of online transactions, where security, speed, and accuracy are paramount, the integration of data analytics has emerged as a game-changer in the entire payment journey. From initiating purchases to resolving chargebacks, data analytics plays a pivotal role in ensuring a seamless and secure online payment experience.
Understanding the Online Payment Journey:
Customer Initiates Purchase:
The process begins with the customer selecting products or services and paying at the checkout. This initiation sets the stage for a series of intricate transactions.
Input Payment Information:
The customer enters sensitive payment details, necessitating robust security measures to protect against potential threats such as fraud or data breaches.
With Credit Card payments, a 3DS authentication is initiated. WLPayments build a unique 3DS routing engine. With the availability of historical transaction data WLPayment will route the transaction to Low Value Exemption, a 3DS authentication or send the transaction to the acquirer if the acquirer has made the 3DS check mandatory on their side. Using data analytics and AI WLPayments will route the transaction through the 3DS funnel most efficiently and effectively, ensuring there is minimum friction for the customer performing the transaction.
After the 3DS decision engine, the transaction is sent to the acquirer
Upon receiving payment information, the online merchant initiates a transaction request, marking the starting point for more data analytics to come into play.If a transaction fails, the gateway will automatically route the transaction to another acquirer based on historical data analysis and decline code received.. If the reason code from the acquirer rules out the possibility of being accepted by another acquirer, our gateway, based on historical data, suggest other payment methods, which gives the consumer another opportunity to complete the transaction leading to a higher success rate and revenue at the merchant end.
Optimizing the initial purchase acceptance with Intelligent Transaction Routing.
At WLPayments, we build the most sophisticated Intelligent Transaction Routing on the market. Data is the commodity we use to fuel the intelligence we build to optimise the acceptance ratio and create deep insights into transaction data. This data is used to create rules with Intelligent Transaction Routing to redirect payments to appropriate acquirers based on various prioritised conditions. Fast, efficient, and reliable – because every second counts.
Data analytics and fighting fraud.
As a merchant, it is crucial to ensure that transactions are secure and have minimal chances of being fraudulent. To achieve this, data analytics plays a vital role. WLPayments has developed an anti-fraud engine that utilizes complex algorithms, machine learning, and pattern recognition to identify potentially fraudulent activities by analyzing transaction data, customer behavior, and other relevant indicators. The engine includes velocity checks that monitor the frequency of certain transaction data elements occurring within specific intervals and look for anomalies or similarities to known fraud behavior.
Customer Behaviour Analysis:
By analysing customer behaviour data, merchants can gain insights into preferences, helping to personalise the shopping experience and reduce the likelihood of disputes.
The Customer Quadrant is a dynamic page designed to elevate your strategic insights and operational efficiency. It serves as a real-time CRM tool within our platform, categorizing customers into Trailing, Contending, Performing, and Leading segments, which allows senior managers, marketing, sales, and finance teams to identify and focus on high-value customers effectively. This powerful page showcases active, unique customers, and their transaction behaviors, including average transactions and volumes per customer, with an intuitive quadrant, detailed charts and a geography table reveals where customers are buying from, providing a global perspective on your market reach. By having this page available, you eliminate the need for cumbersome pivot tables, placing comprehensive, actionable data just a click away and enhancing fraud detection capabilities with its real-time reporting.
- Payment Gateway Processing:
- The payment gateway, a critical component in securing transactions, employs data analytics to assess the legitimacy of the transaction, encrypt sensitive information, and ensure compliance with security standards.
- Credit Card Scheme Approval:
- Credit card schemes, including industry giants like Visa and MasterCard, utilise data analytics to scrutinise transactions for adherence to rules, identifying potential risks and anomalies.
- Issuing Bank Authorization:
- The issuing bank, armed with data analytics tools, assesses the transaction for validity, funds availability, and potential fraud, contributing to the efficient and secure approval process.
- Merchant Settlement:
- Data analytics steps in again during the settlement process, ensuring accuracy in fund transfers and identifying any irregularities that may require further investigation.
- Potential Chargeback:
- Data analytics proves invaluable in identifying patterns that may lead to chargebacks, allowing merchants to proactively address customer concerns and enhance dispute resolution processes.
- Chargeback Resolution:
- In the event of a chargeback, data analytics aids in the resolution process by providing insights into the validity of claims and facilitating informed decisions to mitigate financial losses.
The Added Value of Data Analytics:
- Fraud Detection and Prevention:
- Data analytics algorithms can analyse transaction patterns in real-time, swiftly identifying anomalies that may indicate fraudulent activities. This proactive approach enhances security and safeguards both merchants and customers.
- Customer Behaviour Analysis:
- By analysing customer behaviour data, merchants can gain insights into preferences, helping to personalise the shopping experience and reduce the likelihood of disputes.
- Transaction Monitoring:
- Continuous monitoring of transactions enables quick identification of irregularities, ensuring timely responses to potential issues such as double charges or payment failures.
- Enhanced Decision-Making:
- Data analytics empowers merchants and financial institutions to make informed decisions based on historical data, reducing the likelihood of errors and improving overall transaction accuracy.
- Streamlined Dispute Resolution:
- In cases of chargebacks, data analytics aids in the analysis of transaction data, enabling a more streamlined and efficient dispute resolution process.
In conclusion, the importance of data analytics in the online payment journey cannot be overstated. Its role in enhancing security, improving decision-making, and streamlining processes contributes to a more efficient and secure online payment ecosystem. As technology continues to evolve, the integration of advanced data analytics will undoubtedly play a crucial role in shaping the future of online transactions.