Pazien’s access to Visa TC40 and Mastercard SAFE data gives you the analytics you need to create a solid fraud prevention strategy.
Unlike the standard TC40 and SAFE reports, which simply outline transaction-level details, Pazien provides insights into fraud claims. You’re given data on regions, currencies, MIDs, reason codes, and more, that are inflicting the highest instances of fraud on your business.
Knowing the holes in your payment operations can help you make decisions on whether to implement fraud or risk tools, to enable authentication methods in certain regions, or to route transactions more effectively.
TC40 and SAFE reports
Visa and Mastercard capture all fraud related claims for their networks. Here’s how it works:
Fraud claims vs. chargebacks
Many people assume that all fraud claims turn into chargebacks, but that’s not always the case. Since chargebacks come at a cost to issuing banks, issuers can choose to refund fraud claims without advancing the transaction to a chargeback. This is especially common with lower ticket items (e.g. $20). The bank is not obligated to let you know when they refund claims, yet the fraud claim still counts toward your overall fraud rateassessed by Visa and Mastercard.
Fraud can come back to bite you
Without TC40 or SAFE data, it’s incredibly difficult to know if fraud claims are building up against you. There are a couple of ways fraud claims can come back to bite you:
You may not receive fraud reports
TC40 and SAFE reports are only available to you at the discretion of the acquirer or processor. These files tend to be very large and expensive as Visa and Mastercard don’t split the data by merchant. The networks simply send a fraud transaction dump, which makes it difficult for the acquirer to parse and distribute the report to you on a regular basis.
Acting on individual fraud claims can be costly
If you can get your hands on your TC40 or SAFE reports, your instinct may be to assess fraud claims and instantly issue refunds to consumers to avoid a possible chargeback. However, this isn’t a long-term or reliable fix for a few reasons:
Pazien fetches Visa TC40 and Mastercard SAFE fraud data and breaks transactions down into analytical insights. This data allows you to understand the roots of fraud and identify trends in what’s causing fraud. Understanding this information allows you to make cost decreasing, and revenue increasing decisions.
As you refine your fraud prevention strategies, Pazien enables you to quantify any changes you make. You can do this by tracking fraud-related declines (stopping fraud before it becomes a sale), and by doing a trend analysis to see how chargebacks change over time.
The best fraud strategies come down to stopping fraud at the source and Pazien data can help you do that.