Learn how to approach payment program management in financial services—and why it matters for your program profitability and long-term success.

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HOW TO FIGHT PAYMENTS FRAUD WHILE PRESERVING A POSITIVE UX

How to Fight Payments Fraud while Preserving a Positive UX

Recap

January 11, 2023

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As payments fraud continues to rise–and grows ever-more sophisticated–a robust fraud protection and mitigation strategy has become a cornerstone of any successful payments program.

The good news for providers is that they now have access to increasingly sophisticated tools that can proactively identify and stop fraud attempts in their tracks by leveraging the power of data and artificial intelligence.

But successful fraud protection takes more than just deploying the latest high-tech defenses. It also requires a thoughtful, ongoing engagement with end-users to ensure those safeguards aren’t adding unnecessary friction to the user experience.

In a recent interview with PYMNTS, Galileo head of operations Trish Cox offered payment providers some key tips on striking the crucial balance between security and seamlessness.

Watch the full interview.

Heed the voice of the customer

Cox advised collecting and leveraging end-user input in all aspects of managing a payments program, noting that “the voice of the customer is a key part of your operational data to help manage your business.”

One area in which customer sentiment is particularly useful is evaluating if and how anti-fraud measures may be detracting from user experience. Understanding what causes clients to disengage from a product or service at a particular point is key to evaluating whether that friction can be eliminated in a way that preserves fraud protection–and given the sophistication of today’s AI-based anti-fraud tools, it often can be, Cox said.

Look beyond the transactions

When it comes to customer pain points–and the potential for disengagement such snags represent–it’s not just about transaction activity, Cox cautioned. Instead, providers must evaluate the entire spectrum of the customer journey to ensure every step is secure but seamless–a crucial element of effective customer growth and activation strategy.

“We’ve seen a couple of key points where consumers dropped off after opening an account or between activation and funding.” observed Cox. “Often, those friction points for your clients or customers can be enlightening. They can deliver insights around where you need to innovate and help ensure that you are building for scale and cost,” she added.

“Often, those friction points for your clients or customers can be enlightening. They can deliver insights around where you need to innovate and help ensure that you are building for scale and cost,” she added.

Be open to thinking big

Input from customers around pain points may reveal potential for process tweaks or ways to leverage anti-fraud tools more effectively. But those insights also may call for a more fundamental re-imagining of how a payment product works. Providers would be wise to remain open to at least consider those potential foundational shifts; indeed, that willingness to “think big” when responding to customer sentiment often is what generates the most effective improvements and advances, according to Cox.

“You’ve got to keep your customer-centric approach,” Cox advised. “Sometimes you get the most interesting innovations when you question the value of everything you’re doing along the way and rethink the processes.”

Click here to watch the full interview.

Click here for our complete guide to combating payments fraud.