CyberSource Risk Management Solutionsrm_sonar/CEP_Material/DecisionManager.pdf · CyberSource Risk Management Solutions ... Control fraud loss, increase sales conversion, ... Rule

CyberSource Risk Management Solutions

• Automatically sort more orders, more accurately

• Make your fraud team more productive

• Scale operations easier, with less cost and risk

• Better predict and control business results

Includes

Device Fingerprinting

&

Botnet Detection

The Most Widely Used Online Fraud Management Solutions, Worldwide

CyberSource Risk Management Solutions

Choose the market-proven solution that

meets your business objective…

Objective: Optimize In-House Fraud Management Performance/Efficiency …. 2-8

Solution: CyberSource Performance ManagementControl fraud loss, increase sales conversion, and increase review team capacity and accuracy.

CyberSource Decision Manager System

• Business user rules system with over 150 pre-integrated detectors and tests

• Case management system

• Analytics package

Performance Monitoring by an expert CyberSource fraud analyst

Now With

Advanced Device

Fingerprinting

Technology

www.cybersource.com 1 1-888-330-2300

Objective: Control Fraud, Scale Easier, Reduce PCI Scope …………………… 9-10

Solution: CyberSource Screening ManagementOur staff of experienced analysts and order conversion experts manage your screening and review operations.

• CyberSource Decision Manager System to automate fraud screening

• Expert CyberSource Fraud Analyst to design, manage and monitor your program

• Experienced CyberSource Order Review Agents manage order review and conversion

• Branded Toll-Free Number and related services to maintain your brand with your customers

• World-class Call Center Facilities

Objective: Increase Chargeback Revenue Recovery & Reduce PCI Scope …….11

Solution: CyberSource Chargeback RecoveryOur experienced chargeback recovery agents examine and fight your chargebacks so

you can capture more revenue and reduce fees. The ROI case is simple—we get paid

only when we recover your money. And, you eliminate a point of payment data exposure,

thereby reducing your PCI scope. No system changes are required. We’ll work with your

current payment solution, even if it isn’t CyberSource.

Win-Win

Approach

Our hosted Decision Manager system with CyberSource Intelligent Review Technology helps you

reduce the need for review, speed review, and optimize business results.

The CyberSource Decision Manager System

Manual

ReviewAutomated

Queue

Management

Automated

Routing & Priority

Assignment

2

Orders

Auto Screen

1

2a. Case Routing & Priority Assignment

Establish rules to automatically route cases

and assign priority based on order profile and

reviewer skill set. Case ownership features

enable active reviewer management and

prevent multi-reviewer intervention.

2b. Automated Queue Management

Create rules to automatically monitor case

handling and ensure they clear the queue per

your customer service commitments. Cases at

risk trigger action alerts or are automatically

dispositioned per your business rules.

3. Review Dashboard with In-line Validation

All order and validation data, along with

reasons for order outsort and best reviewer

advice, are conveniently displayed within a

workflow-savvy case review dashboard.

Reviewer validation tasks are also streamlined

to increase productivity. Reviewers no longer

need to invoke reverse telephone lookup,

credit history and similar services via separate

screens, or input required customer data.

Validation services are called from within the

case interface and all necessary customer

information is automatically submitted without

additional data input.

1. Initial Screen with 4D Detection

Our portal provides on-demand access to

150+ global fraud tests, across four

dimensions of detection. Rule console lets you

enforce acceptance policies based on test

results. It’s a proven best practices approach

to accurately detect fraud and lift conversion,

while minimizing need for manual review.

Smarter, Automated Case Routing

and Queue Management

Faster, More Accurate Case Review

More Accurate Screening Reduces

Manual Review Volume

Portal provides access to 150

global fraud detectors and tests,

complete with business-user

rule console to automatically

enforce acceptance and review

policies.

3

CyberSource Decision Manager SystemPerformance

Monitoring by

Experts

4

Tuning & Analytics: Better Predict and Control

Business ResultsTest mode, process performance and reviewer performance reports

let you monitor results and adjust on demand.


PERFORMANCE

MANAGEMENT

Handle up to 2X or More Order

Volume Per ReviewerImproved automated screening reduces the

need for review, while intelligent case

management tools focus review and

streamline reviewer tasks. You can increase

the capacity of your current review team,

while improving fraud control.

Enhance Automated Sorting Accuracy.

Convert More Sales. Detect More Fraud.A proven best practices portfolio of global fraud

detectors (including packet-level device fingerprinting

and global multi-merchant transaction history tracking)

and powerful business-user rule management console

allow you to more accurately sort inbound orders.

Better Predict and

Control Business ResultsNow, change screening strategies on

demand. See rule impact prior to

production. Complete suite of analytics

and analyst support helps tune your

process. Plus, our business performance

guarantee helps ensure desired results.

Rule System – Detectors – Case Management - Analytics

Decision Manager: Rule Console & Validation Services

Access Over 150 Popular Validation Tests and Services, Worldwide

Passive Mode Lets You Test Rules SafelyWant to evaluate results before applying rules to real orders? No problem. Just select “Passive Mode” and Decision

Manager runs the new screening profiles in the background while your current production rules continue to run.

Once you review results, you can tune rules or place them into production.

Our easy-to-use Web interface lets your business managers quickly create rules that interact with

multiple, global validation services to automatically analyze and sort incoming transactions associated

with all major payment types:

• Create rules using a pre-defined rule library and easy-to-use custom rule builder

• Create multiple screening “profiles” (product category, SKU, expedited shipping, etc.)

• Apply conditional relationships between several rules using “and” / “or” type logic

Only CyberSource lets you cast a deep net across four dimensions of validation, in less than 2 seconds, to catch fraudulent

behavior sooner and more accurately. Simply put, it’s harder for fraudsters to look like unique customers because you can

simultaneously compare their behavior and order profiles across multiple anonymous merchants, your own store, global validation

services, and order placement device(s). Here are

just a few of the real-time validation tests you can

automatically apply via our portal:

Rule Console: Easily Create Screening Rules On Demand

Device FingerprintingDerives a “digital fingerprint” of the device used for order

placement. This fingerprint can then be used in conjunction with

other order attributes to detect abnormalities.

IP GeolocationAssesses the consistency between the geographic location of the

IP address and address/billing information provided with the order.

Includes ability to detect anonymizers.

Purchase Device Tracing

Single Merchant Purchase History

Custom Data FieldsCustom data fields allow you to present business-unique data for

evaluation. Examples include: customer purchase histories,

order change histories, airline passenger data/PNR data, etc.

Single Merchant Purchase Velocity Automatically monitors the frequency of orders placed with your

company, purchases of a particular SKU in a given timeframe, value

of accumulated purchases or combination of these conditions.

Negative & Positive ListsAllows you to maintain your own negative and positive lists for

decision assessment (lists are not shared among merchants).

Lists can be uploaded and chargeback information automatically

appended.

Packet Inspection Detect Botnet Attacks First Time!Sees through anonymizers and botnets to view device behavior and

detect true purchase device. Available Q3 2009.


CyberSource maintains transaction histories across the thousands of

merchants using our services worldwide. We correlate this data to

your presented order (fingerprint, name, email, address, phone,

etc.)—giving you the power of multi-merchant data sharing, without

the privacy risk.

Global, Multi-Merchant Purchase History

Global Delivery Address VerificationValidates address format and deliverability for 233 countries. Can

also be used at time of order placement to detect “fat fingering”

and eliminate the risk of invalid order rejection or mis-shipment.

Global Telephone Number ValidationValidates telephone number structure via an international

database covering over 100 countries.

U.S. Export Compliance/DPL ListsReal-time check of denied parties and persons of question across

multiple lists maintained by U.S. government agencies.

Verified by Visa/MasterCard® SecureCode™Results from Verified by Visa and MasterCard SecureCode checks

can be evaluated by Decision Manager.

Standard Card Brand Services Standard card validation services such as AVS and card

verification number are accessed and evaluated.

Other Validation ServicesCustom fields allow you to submit data from other validation

services of your choosing to aid in the decision process.

Global Validation Services

4D

Boxes

Fraudsters

In

CyberSource Risk Management Solutions: Performance Management

Multi-Merchant:

•Velocity

•Identity morphing

•Legal “data sharing”

About Device Fingerprinting: Privacy Policies and Integration

No personally identifiable data is captured. Device

fingerprinting captures information about the DEVICE being

used to initiate the purchase. It does not collect personal

information or personal data. Persons cannot be identified

via this fingerprint.

Generally no need to rewrite privacy policy. If policy

already discloses third-party cookies, or your company uses

cookies to monitor purchase behavior, then using device

fingerprinting will likely not require any change to your

privacy policies.

Won’t set-off browser alarms. The fingerprint does not

interfere with system function, nor will it trigger browser

warnings or P3P enabled privacy alerts.

Implements quickly. Installs in about one hour. Place tags

on your checkout page and it is ready to go. No additional

coding is required.

Note: This information is provided for general guidance.

Consult your attorney if you have questions about your

particular application of this service.



Advanced Deep Packet

Inspection Detects Botnet FraudDevice fingerprinting allows you to identify the purchaser’s device.

With this “fingerprint” you can more quickly detect identity morphing

(different names and account numbers associated with orders

originating from the same purchase device). However, some

fingerprinting technologies use only surface-level tactics and

fraudsters subvert them by changing browser settings or deploying

botnets to initiate the orders on “good citizen” machines. The

fingerprinting technology provided with CyberSource Decision

Manager is different.

ThreatMetrix™ device tracing technology goes deeper. It uses

intelligence from the message packet to see through anonymizers

and botnet activity. It profiles and traces device identity and behavior

all the way to the real fraudster’s system. Even if it is the first time

this device has been seen, intelligence about its behavior helps you

determine if the device is “good” or involved in risky activity.

Bill

Fraudster

Standard fingerprinting identifies (“fingerprints”)

this device only, and does not see behavior.

ThreatMetrix™ fingerprinting with deep packet inspection sees device

behavior and profiles activity all the way to the fraudster’s control system.

Good Customer

Botnet Initiated Order

Poses as a valid customer

from a good customer machine

Risky device behavior such as

botnet activity, firewall scanning, and

spamming are detected to help

assess risk of order acceptance.

Merchant Site

IP_Attributes IP Activities

STATIC,

BOTNET_ZOMBIE

TCP_SCAN_FLAG,

CONNECTING_TO_BOTNET,

SPAM

STATIC,

BOTNET_ZOMBIE

TCP_SCAN_FLAG,

SPAM

STATIC,

BOTNET_ZOMBIE

TCP_SCAN_FLAG,

OTHER,

SPAM

DYNAMIC,

BOTNET_ZOMBIE

OTHER,

SPAM

STATIC SPAM

Decision Manager: Case Management Console

Speed Review with Task-Savvy Review Console & In-line Validation ServicesOrders suspended for review are routed to one or more case review queues you define.

All order data and test results are conveniently consolidated and highlighted on a single screen to

speed review and disposition. Additional validation services can be invoked from within the screen

and without additional data input. See below.

Segment Case ReviewEstablish rules to automatically route orders among multiple, configurable review queues. Use

these queues to segment review via classifications of your choosing, such as:

• Review priority (e.g. standard vs. overnight shipping)

• Product line/category

• Analyst expertise

Statistical risk

score notes

potential for fraud

Export Order Data to Your Case Management SystemHave your own case management system?

Our XML interface makes it easy to export suspended order data to your systems.

With a click of the mouse, reviewers list orders

having similar attributes to detect identity

morphing or inconsistencies. Search by:

• Name

• eMail

• IP Address

• Device Fingerprint

• Account Number

• Shipping Address

Additional observations about the

order speed review.

Device Fingerprint

Reviewers log actions and

log is date/time stamped.

Order data.

Reviewers quickly see why

order was suspended for

review.

One-click in-line validation (w/TargusInfo, Accurint, etc.)

eliminates need to access separate validation screens and

re-input customer data.



In-Screen

Validation

Services

Validation Service Access within Case Management Console

TARGUSinfo

TARGUSinfo customer information verification can

be accessed from within the case management

screen of CyberSource Decision Manager.

Verification requests are automatically initiated

and returned, with the press of a button—there’s

no need to invoke a separate screen or re-input

customer data.

The TARGUSinfo information and Contact

Quality Rating helps you automatically determine

whether or not there is a link between name,

address and phone number. Once linkage is

determined, orders can quickly dispositioned. The

TARGUSinfo service returns address and phone

number information for the customer/order in

question.

Category Category Interpretation and Action

All Information is

Valid and Linked

Orders with the best contact information. Orders that have a linkage between the name, address and phone number

can often be approved, especially if they meet other criteria such as not exceeding an order-value threshold or being a

low-risk product type.

Two Pieces of

Information are

Linked

Combination of name, address or phone linked. In many cases, looking at alternate information provided will help to

paint a complete picture of the order being reviewed. For each rating, the linked relationship is described and any

additional information about the third piece of information is included.

No Linkage or Invalid

Phone/Address

An invalid phone or address should be a warning sign that an order may not reach its destination or is fraudulent.

Wireless phone numbers with no linkage or phones with non-matching names should also get additional review.


Almost any commercial public records and related validation service can be

accessed via the CyberSource Decision Manager case management console.

However, due to security requirements CyberSource will require that the

integration be certified before it can be used in the production environment.

See your CyberSource sales representative for details.

Other Services

AccurintLike TargusInfo, Accurint person, address and phone validation services are pre-

integrated and directly accessible from within the CyberSource Decision Manager

case management console. No re-entry of data is required to prompt a validation

request and receive the results in seconds. Accurint is a LexusNexus® company.


Decision Manager: Tuning & Analytics

See Impact Before “Going Live”Imagine testing the real impact of your rules before

placing them in production. Using the “Passive

Mode,” you can transparently run proposed

screening profiles in the background while your

current profiles are in effect. You’ll be able to

compare results to your control profile and asses the

new screening profile’s impact on acceptance rates,

review rates and fraud rates. Use these results to

further tune the new screening profile prior to

production use.

Review Process Performance

Review process

• # orders reviewed/converted

• Distribution of review across queues

Reviewer performance

• Reviewer accuracy

• Reviewer efficiency

Automated Screening Performance

Screening profile performance

• Accept/reject/review statistics

for a single profile

• Performance comparisons

across profiles

• Screening profile effectiveness

Rule performance

• Frequency of triggering

• Outcome statistics

• Rule recommendation

Tune Rules On DemandWhen you detect questionable activity or new fraud

patterns you can tune your acceptance rules

instantaneously. Using the business user rule

console you can reconfigure the screening profile or

create a new profile and place it into production

immediately—without IT intervention.

Automatically Update Detection

Models and Negative Lists

Your CyberSource system can automatically import

your chargeback data to maintain negative lists and

tune detection models. To utilize this feature your

merchant account provider must support electronic

data feeds of chargeback information.

Comprehensive ReportsCyberSource provides a portfolio of reports to help you analyze and tune your

process, including reviewer effectiveness, review process metrics and screening

performance:

Initial Screen



Plus Performance Monitoring:

Our Fraud Experts Back Your Team to Optimize ResultsCyberSource backs your team with skilled fraud consulting as well as expertise to implement, configure, use, and maintain the

CyberSource Decision Manager (DM) hosted fraud management portal. Our seasoned staff provide deep fraud detection and

process optimization know-how to complement your in-house skills.

Added Peace of MindCyberSource guarantees your Fraud Chargeback

Rate will be controlled to an agreed percentage

of online orders as submitted through Decision

Manager. Should this level of performance not

be obtained (as measured quarterly), a service

credit equivalent to ten percent (10%) of the monthly average

of fees for the Performance Monitoring Service incurred during

the quarter will be issued.

Ongoing Success Monitoring

and Performance Optimization

Monitoring Process Performance. Your assigned

CyberSource Managed Service Analyst (minimum 5 years

experience) provides ongoing monitoring and consulting with

specific focus on the following areas of your operation:

• Order acceptance

• Screening profile performance

• Identification of suspected fraud trends

Monthly Performance Reports. Includes order conversion

analysis and test results of new strategies.

Fraud Strategy Configuration Updates. Updates are made as

needed and implemented by the CyberSource Managed

Service Analyst for Rules, Order Profiles and settings. Open

communication is maintained between CyberSource and your

team regarding strategy and rule changes.

Experts Help You Streamline and

Optimize Implementation

Consulting. Your assigned CyberSource analyst will provide

up to two days product integration and configuration

consulting, including cross functional support from other

CyberSource product, risk, and technical experts (daily travel

fee applies to onsite consulting):

Technical Integration. 10 hours support from CyberSource

to assist with technology integration.

Product training. Includes, but is not limited to, the following:

• Review existing order acceptance, rejection and review procedures

and metrics (if required). Present recommendations to improve

specific business processes associated with order acceptance,

payment processing, and fraud management.

• Identifying order screening profiles and rule sets needed for DM.

• Implementing multiple screening profiles in DM.

• Introduction and review of performance monitoring analysis and

reports; identification of, and benchmarking for key performance

metrics associated with order conversion, fraud rate, and

productivity. Adjusting DM performance through tuning for

situational, seasonal, and product-related screening.

• Using the CyberSource Business Center

• Utilizing case management for order review

• Developing custom rules and using the rule library

• Profile performance analytics

• Reviewer analytics

• Test mode


About Your Fraud Analyst

Your account is monitored by a true fraud management

professional. We require our analysts to have 5-10 +years of

fraud management experience in a merchant environment.

And, you get the power of an analyst team—a resource you

likely can’t afford to replicate on your own.

Just like doctors can consult with other doctors about a

difficult case, our fraud analysts meet to discuss trends and

share fraud management strategies. Not only do you get an

experienced fraud analyst, you get the power of an entire

peer team.


Business Performance

GuaranteeCyberSource guarantees your

Fraud Chargeback Rate will

be controlled to an agreed

percentage of online orders as

submitted through Decision

Manager. Should this level of

performance not be obtained

(as measured quarterly), a

service credit equivalent to ten

percent (10%) of the monthly

average of fees for the

Performance Monitoring

Service incurred during the

quarter will be issued.

Control Fraud & Increase Sales

Scale Easier.

Manage Less.

Outsource fraud management operations to CyberSource experts

Experts Install & Configure Your

Fraud Management System

Global Fraud Management Portal. The

CyberSource Decision Manager hosted fraud

management system is the foundation of this

solution (decision system, case management

system and analytics). See Performance

Management solution for system details.

Expert Consulting. Your assigned CyberSource

analyst will provide up to two days product

integration and configuration consulting, including

cross functional support from other CyberSource

product, risk, and technical experts (daily travel fee

applies to onsite consulting):

Technical Integration. 10 hours support from

CyberSource to assist with technology integration.

• Review existing order acceptance, rejection and

review procedures and metrics (if required). Present

recommendations to improve specific business

processes associated with order acceptance,

payment processing, and fraud management.

• Identifying order screening profiles and rule sets

needed for DM.

• Implementing multiple screening profiles in DM.

• Introduction and review of performance monitoring

analysis and reports; identification of, and

benchmarking for key performance metrics

associated with order conversion, fraud rate, and

productivity. Adjusting DM performance through

tuning for situational, seasonal, and product-related

screening.


SCREENING

MANAGEMENTFraud Screening

System

Manual Review

Services

Performance

Monitoring

You Keep Your Brand.

We Do The Work.All interaction with your

customers carries your brand.

We establish a toll-free number

specifically for your account. All

communications with your

customers are handled via that

number and reference your

brand.

Experienced Staff Review Your Orders.

Experts Optimize Results.

Order Screening & Review. Our Decision

Manager system will automatically screen and sort

your orders with superior precision. Orders

outsorted for review will be investigated by our

expert staff. CyberSource will verify cardholder

information through direct contact to cardholder,

the issuing bank, third-party verification services,

public records companies, and/or other services

and processes deemed appropriate by mutual

agreement between you and your CyberSource

Managed Services Analyst.

Process Performance Monitoring. Your

assigned CyberSource Managed Service Analyst

(minimum 5 years experience) provides ongoing

monitoring and consulting with specific focus on

the following areas of your operation:

• Order acceptance

• Screening profile performance

• Identification of suspected fraud trends

Fraud Strategy Configuration Updates. Updates

are made as needed and implemented by the

CyberSource Managed Service Analyst for Rules,

Order Profiles and settings. Open communication

is maintained between CyberSource and your

team regarding strategy and rule changes.

Monthly Performance Reports. Your fraud

analyst meets with you monthly to review

performance. Analysis includes: order conversion,

screening profile performance, review team

performance, chargeback trends, and merchant

specific fraud patterns and trends.

Reduces

PCI

Scope

By outsourcing your

operations to CyberSource,

you also reduce your PCI

scope. Your staff no longer

interact with payment data.

Systems & Infrastructure Not Easily Replicated

Our staff operate with a full complement of professional-grade tools,

systems and facilities. Including:

• Sophisticated detection and rules systems

• Advanced case management systems that optimize efficiency

• Public records validation services (residence, telephone)

• Non-U.S. records (voting records, telco/utility records)

• Redundant server and systems infrastructure

• Commercial-grade IT services

• Rigorous physical security systems (access, surveillance)

• PCI certified operations (facilities, systems, staff)

World-Class Screening Operations, On-DemandIt’s not just about outsourcing review staff. It’s about instantly injecting a complete, world-class orders screening and review operation into

your business. Expert staff and management. Professional systems and processes. Fully redundant, PCI-certified operations.

Experienced, High Integrity Review Staff

Our review staff are experts. Fraud screening is

all they do. No general customer service work.

CyberSource is a payment management

company and our review staff are strictly focused

on payment fraud management.

Deep Staffing Coverage

When you outsource operations to CyberSource

you avoid the hassle of staffing your own

operation. In fact, you get coverage you’d likely

not afford to staff-out on your own:

• Fully redundant staffing

• 7x12 minimum review coverage

• Flex hours (seasonal)

• International (United States and UK)

Fully Branded Operations

We provision and maintain a

dedicated toll-free number carrying

your brand for all customer

interaction.

Professional Call Center

Management

Our review teams are managed by

professional, experienced call center

managers. We know how to incent

reviewers to work with maximum

efficiency and accuracy to optimize

your results.

Professional Process Management

Your account is managed by a true fraud

management professional. We require our

analysts to have 5-10 +years of fraud

management experience in a merchant

environment. And, you get the power of an

analyst team—a resource you likely can’t

afford to replicate on your own.

Just like doctors can consult with other

doctors about a difficult case, our fraud

analysts meet to discuss trends and share

fraud management strategies. Not only do

you get an experienced fraud analyst, you

get the power of an entire peer team.

CyberSource Risk Management Solutions: Screening Management


Operating DetailsTo deliver this service, the following operating practices will be adopted:

Chargeback Communications

CyberSource will manage communication with the involved financial

institutions, including email, fax and verbal contact with the appropriate

parties in the resolution process.

A CyberSource Chargeback Recovery Agent will work with you to determine

security requirements related to information passing between parties in the

process. CyberSource will maintain and provide detailed reports relating to

retrieval requests, first and second chargebacks, and arbitration casework.

Process Flow and Adherence to Industry Requirements

CyberSource will adhere to processor requirements for response times and

documentation. CyberSource will use data available in CyberSource

transaction systems (if applicable), and request additional information from

your systems as appropriate to complete the dispute package requirements

imposed by the processor.

Service Terms and ConditionsCyberSource will be granted access to the merchant’s chargeback

reporting portal (maintained by the processor, typically), and given

permission to pursue chargeback dispute resolution on behalf of the

merchant.

Merchant will provide timely response to CyberSource requests for

additional transaction information (delivery data, customer service

interaction notes, etc.) when required for the dispute process.

Chargeback Recovery service fee will be calculated as a portion of

recovered funds, and is exclusive of other CyberSource products or

services fees. A monthly minimum recovery amount will apply.

Chargeback Recovery services and resources are available on

CyberSource business days from (7am to 4pm) Pacific Time

Pricing does not include travel and living expenses for onsite training,

service configuration, or report delivery meetings; actual and

reasonable travel and living expenses will be billed on a monthly basis

within 90 days of the completion of the travel, and must be approved

in advance and in writing.

*Monthly minimums apply.

Maintain Constant Pulse on Recovery OperationsWeekly Reporting

CyberSource will provide reporting on the following:

• Incoming chargebacks

• Incoming retrieval requests

• Chargeback reversals (successful re-presentments)

• Chargebacks lost (unsuccessful re-presentments)

Monthly Reporting

CyberSource will aggregate weekly reporting and provide executive

summary and professional opinion including:• Summary of chargeback cases by reason code with dollar amount

• Chargeback trends and recommended actions

• Best practices recommendation for chargeback reduction

and process improvement

Business ImprovementsCyberSource manages your entire chargeback investigation process, from

receipt and review through interaction with cardholders and financial

institutions and re-presentment documentation. Our clients typically realize

these improvements:

Expert Staff Acts on Your Behalf to Recover RevenueCyberSource complements your team with experts specializing in

chargeback recovery operations. We’ll manage revenue recovery and

provide consultation on process improvements and industry best practices:

• Capture more revenue (reclaim revenue otherwise lost to chargebacks)

• Convert fixed overhead costs into variable cost offset by guaranteed revenue

• Decrease time and expense associated with chargeback management

• Eliminate hassle and expense of staff training and turnover

• Scale operations on-demand as sales volume grows

• Daily monitoring and review of chargebacks by assigned CyberSource agents

• Assessment of re-presentment eligibility based on reasons for chargeback initiation

• Collection and preparation of documentation necessary for chargeback dispute

• Adherence to card industry standards for timeframe and documentation

• Management of all communications with issuers as related to this process

• Management of interaction with cardholders (as required to manage process)

• Monthly performance reporting and re-presentment statusing

Pay When RecoveredYou pay only when we recover

your money as a result of

successful chargeback

reversal.*

Win-Win

Approach

CHARGEBACK

RECOVERY SERVICE

Reduces

PCI

Scope

By outsourcing your

operations to CyberSource,

you also reduce your PCI

scope. Your staff no longer

interact with payment data.


Solution SummaryPerformance

Management*

Screening

Management

Chargeback

Recovery

Fraud Management System & Validation Services

Decision Manager: Rule Management Console and Detectors

150+ detectors, including device fingerprinting/packet tracing

Business-user rule management console

Decision Manager: Case Management System

Case management console, all data in one place

Inline access to third party validation services

Expert advice (statistical “cloning” of best reviewer advice)

Decision Manager: Analytics Package

Test mode (assess rule impact before placing into production)

Profile and rule performance


Payer Authentication Service Optional Optional Optional

Fraud Management Strategy Design, Implementation and Monitoring

Risk Process Design & Strategy Development

On-site review of process and data histories

Rule and strategy definition for automated screening

Detector analysis and settings specification

Decision System Configuration, Testing, Training

Decision Manager integration support and testing

Rule configuration and testing

Case management queue configuration and testing

Staff training (as required)

Ongoing Performance Monitoring and Analysis

Assigned fraud analyst

Rule sensitivity analysis and threshold optimization

Screening profile and rule performance


Detailed reports: fraud, reject, review (weekly, monthly)

System Tuning & Updating

Define, test and deploy new rules/screening strategies

Define and deploy new case queuing parameters

Manual Order Review Operations & Facilities

Order Review Management (per your policies)

Cardholder and bank verification; public records checks

Other parameters per your policies

World Class Facilities & Branded Customer Touch Points

Dedicated toll-free phone number/your branding

Facilities: call center, redundant systems, IT, management

Chargeback Review & Recovery Management

Chargeback Recovery Operations

Chargeback review and analysis

Investigation with cardholders and banks

Data collection, packaging and representment

Detailed win/loss reporting (weekly and monthly)

World Class Facilities & Branded Customer Touch Points

Dedicated toll-free phone number/your branding

Facilities: call center, redundant systems, IT, management

*If Decision Manager system is purchased separately, purchase of Success Start Orientation Package is required.


CyberSource Risk Management Solutions: Summary

Additional Information on CyberSource Managed Services

Risk Analysts

Minimum 5 years experience in related industries. Responsible for monitoring

transactions, Decision Manager/risk scoring performance, and developing

synthesized analysis and tactical recommendations.

Data Analysts

Quantitative experts with vast knowledge of CyberSource fraud and

authorization systems; able to research and develop queries on an as needed

basis. This position supports our risk analysts or specific requests from clients.

Risk Subject Matter Experts (SME)

Minimum 5-10 years experience in risk/fraud business practices for particular

industry models (retail, digital goods, subscription, membership, etc.) The Risk

SME is the CyberSource liaison with particular merchant industry organizations,

the card associations, and individual merchants. The SME brings a vast amount

of experience to risk management and online order management processes

and provides strategic recommendations and guidance.

Experts in:

Apparel, Consumer Electronics, Entertainment, eTail, Telecom, Travel

Sample Service Scenario

When

Post-

Agreement

Execution Week 1 Weeks 2 – 4 Weeks 5 – 8 Weeks 9 – 12 Weeks 13 – 52

Actions Conference call

to review

merchant project

timelines,

miliestones, and

identify internal

merchant

resource leads

Two day onsite review:

Business process

discovery

Order architecture

review

Fraud analysis and

strategy consulting

Decision Manager

configuration

Additional fraud

consulting

Additional product

training

Project advice and

guidance. Passive

testing and tuning of

rules/process.

Technical and

integration support

Managed risk

analysis

Performance

monitoring with

weekly metrics

review

Monthly

performance

reports

Technical and

operations support

Quarterly fraud

metrics review

Ongoing

performance

monitoring

Lead

Resource

Managed

Services Analyst

Solution

Architect(as needed)

Technical Account

Manager

Technical Account

Manager

(as needed)

Live


CyberSource Risk Management Solutions: Appendix


Managed Services Terms & Conditions

Success Start Orientation Package

Our Success Start orientation package provides up to ten hours of expert guidance to support your successful configuration and use the

CyberSource Decision Manager global fraud management portal.

Orientation Sessions

Typically conducted via two, 2 hour training sessions facilitated by a

conference call and Microsoft LiveMeeting.

Review business model and order review process

Review data on average order size, average loss size and effects of

seasonality on business

Review existing fraud patterns (if data is available)

Business Center use (logging in, navigating)

Profile use (set-up, test and deployment)

Using Passive and Active modes

Country Selectors and Queue Definition

Merchant Velocity and Global Velocity settings/rules

Positive and Negative lists, and why important

Chargeback feedback loop; using Mark and Mark as Suspect and auto data

feeds for chargeback information

Case management system and configuration considerations

Reports and Analytics; introduction to Decision Manager reports and how to

use them to improve results

Advise on best practices for fraud management and order review

as appropriate

Follow-on Support

Six (6) hours of follow-on support as needed, covering:

Review education materials as necessary

Adjust profiles, profile selectors and velocity rules as

necessary (conducted via Microsoft LiveMeeting)

Provide any necessary integration assistance

Review operational and Passive Mode trial results

Structured checkpoint calls 30-60-90 days following

orientation to support best practices implementation

Recommended Participants

Representatives of all business areas impacted, including:

Accounting/Risk Management

Customer Support

Administration and IT Support

Screening Management

Service Terms and Conditions

Service fee includes CyberSource Premier Support, including a dedicated Technical

Account Manager.

Service fee is exclusive of Decision Manager (and any other) transaction fees.

Term for this quoted service is a minimum of 12 months. If you choose to cancel

Performance Monitoring after 12 months, but continue using Decision Manager, you

will be charged applicable transaction fees according to CyberSource’s current price

list.

Pricing includes up to five merchant login IDs for a single line of business; additional

merchant login IDs related to your same line of business will be available at an

additional charge; contact your CyberSource sales representative for a quote for

additional merchant login IDs or lines of business.

Pricing does not include travel and living expenses for onsite training, configuration,

or report delivery meetings. Any travel must be requested and approved in advance

by the merchant.

CyberSource Managed Service Analysts are available from 9am to 5pm, Pacific Time

on CyberSource business days.

CyberSource will provide one (1) dedicated toll free telephone number (800 number)

for cardholder contact and verification on your behalf.

All orders will be subject to a two (2) business day review window. The two business

day review window will mean that for all orders submitted to DM by 12noon PT, a

decision will be rendered by 4PM PT on the second following business day.

The order review services are available on CyberSource business days from 7AM to

4PM PT. All transactions submitted on non-business days (weekends, holidays, etc.)

will be reviewed the following business day.

Performance Monitoring

Service Terms and Conditions

Service fee includes CyberSource Premier Support,

including a dedicated Technical Account Manager.

Service fee is exclusive of Decision Manager (and

any other) transaction fees.

Term for this quoted service is a minimum of 12

months. If you choose to cancel Performance

Monitoring after 12 months, but continue using

Decision Manager, you will be charged applicable

transaction fees according to CyberSource’s current

price list.

Pricing includes up to five merchant login IDs for a

single line of business; additional merchant login IDs

related to your same line of business will be

available at an additional charge; contact your

CyberSource sales representative for a quote for

additional merchant login IDs or lines of business.

Pricing does not include travel and living expenses

for onsite training, configuration, or report delivery

meetings. Any travel must be requested and

approved in advance by the merchant.

CyberSource Managed Service Analysts are

available from 9am to 5pm, Pacific Time on

CyberSource business days.

If CyberSource Decision Manager is Purchased SeparatelyWe find customers achieve the best results when our Performance Management or Screening Management solution packages are used.

However, if you wish to purchase CyberSource Decision Manager separately, CyberSource requires purchase of this Success Start orientation

package to help ensure your success.

CyberSource Risk Management Solutions: Appendix

NORTH AMERICA

CyberSource Corporation

1295 Charleston Road

Mountain View, CA 94043

T: 888.330.2300

T: 650.965.6000

F: 650.625.9145

Email: [email protected]

EUROPE

CyberSource Ltd.

The Waterfront

300 Thames Valley Park Drive

Thames Valley Park

Reading RG6 1PT

United Kingdom

T: +44 (0) 118.929.4840

F: +44 (0) 870.460.1931


JAPAN

CyberSource KK

3-11-11 Shibuya, Shibuya-ku

Tokyo, 150-0002 Japan

T: +81.3.5774.7733

F: +81.3.5774.7732


www.cybersource.com

1-888-330-2300© 2008 CyberSource Corporation. All rights reserved. CyberSource is a registered trademark in the U.S. and other countries. ThreatMetrix is a registered

trademark of ThreatMetrix Corporation. All other brands, product names, and trademarks are the property of their respective companies.

Documents

CyberSource Risk Management Solutionsrm_sonar/CEP_Material/DecisionManager.pdf · CyberSource Risk Management Solutions ... Control fraud loss, increase sales conversion, ... Rule