User Guide

Introducing Fraud Management Filters
Merchants With Third-Party Shopping Carts
14 June 23, 2009 Fraud Management Filters
2. If the total amount of the transaction is greater than the amount specified by the Maximum
Transaction Amount filter, the transaction is pended awaiting review; regardless of whether
the transaction is pended, the next filter is applied.
3. If the transaction’s country of origin matches a country specified by the Country Monitor
filter, the payment is denied and processing stops; otherwise, the next filter is applied.
4. If the customer’s credit card security code does not match a valid code, the Card Security
Code Mismatch filter flags the transaction and processing continues; the next filter is
applied.
5. When there are no more filters to apply and the transaction has not been pended, the
payment is accepted; otherwise, you must decide whether to accept or deny the payment.
Modifying the Examples to Meet Your Needs
These examples use specific filters, which are set to take specific actions. Your needs dictate
how you use these and other filters to reduce risk to a manageable level without significantly
increasing the effort required to process an order.
You need not use the same filters shown in the examples and you can take different actions if
you do use them. The following items are just some of the alternatives for you to consider:
z You may decide not to use the Total Purchase Price Minimum filter or use it with a lower
transaction value.
z You may decide to pend transactions from high-risk countries rather than deny their
payments.
z You may decide to flag high-value transactions rather than pend them for review.
Setting up Fraud Management Filters requires both experimentation and iteration.
Merchants With Third-Party Shopping Carts
Merchants that use a shopping cart provider, should consult with their vendor about their level
of support for Fraud Management Filters.
You can use Fraud Management Filters with a third-party shopping cart. You should check
with your vendor about their level of support for Fraud Management Filters because the
business procedures you use to review transactions may be different depending on your
shopping cart’s level of support.
For example, your cart vendor may support all features of Fraud Management Filters, in which
case, you would review and accept or deny payments from their service. If your cart vendor
does not provide any additional support for Fraud Management Filters, you will need to log
onto PayPal to review and accept or deny payments or provide your own solution using the
PayPal API to develop a custom application.