User Guide

Setting Up Fraud Management Filters
Fraud Management Filters Setup Strategy
18 June 23, 2009 Fraud Management Filters
z Deny the payment. This operation is automatic; however, because the action results in the
loss of revenue if the payment is actually legitimate, you should choose this action only
after careful consideration.
In the case of the size of the transaction, and with many other filters, can choose a threshold
for which the specified action applies; for example, you can flag, review, or deny transactions
over a specified amount.
You should set up your Fraud Management Filters so that most transactions pass through your
filters and payments are accepted automatically. Your goal is to minimize the risk of a
fraudulent transaction against the cost of denying a legitimate payment and to minimize the
time required to review transactions.
To meet this goal, you typically experiment with the filters available to you and the actions to
take. Before you set up a filter to deny payments or pend transactions for review, you can set
the filter to flag the transaction, which allows you to identify the transactions before taking
more severe actions. PayPal also provides you with feedback on the operation of each filter.