Visa Inc.'s CyberSource has launched an analytics tool called Decision Manager Replay that allows merchants to assess their online fraud management and detection strategies based on data intelligence.

The new tool is an extension of Decision Manager, CyberSource's flagship online fraud management platform, which provides insights from more than 60 billion transactions annually processed by Visa and CyberSource online and offline.

With Replay merchants can reconsider and analyze hypothetical if-then outcomes of previous transactions based on how differently they could have loosened or tightened their risk level settings. 

“Merchants create rules and parameters in their fraud management systems that determine whether a transaction is accepted or denied, based on risk levels,” Andre Machicao, CyberSource senior vice president, said in an Oct. 20 press release. “In some cases, the parameters they set might be overly cautious, causing them to lose legitimate, safe business unnecessarily."

For example, by running a set of transactions through the system, it can reevaluate fraudulent transactions as valid transactions that were mistakenly flagged and denied. The analysis takes only a few minutes, and the merchant can adjust their system settings to make sure they don't deny valid transactions any further.

About 27% of online orders received by merchants are routed to fraud analysts for further review, according to research by CyberSource. Of those transactions, 85% are deemed valid and accepted.

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