Alipay — an online payment service in China which is affiliated to the Alibaba Group — recently partnered Cybersource, a Visa company, in an effort to reduce and control fraud rates for its merchants.
According to the Visa eCommerce Monitor 2013, 56 percent of the Chinese consumers surveyed indicated that transaction security is a key concern when making online payments. The partnership thus aims to enable Alipay's merchants to "maintain low fraud rates" so that they will have a competitive advantage in the Chinese eCommerce market, said Tu Jianwei, senior director of Alipay.
By using the CyberSource Decision Manager and Cybersource Managed Risk Services, Alipay has improved its existing in-house fraud management capabilities.
CyberSource Decision Manager features a fraud detection radar that helps Alipay to pinpoint fraud faster, more accurately and with less manual intervention. This is achieved by screening inbound orders against data and correlations from more than 60 billion transactions processed by Visa and CyberSource annually. The transaction data is supplemented by 260 validation and correlation tests, which enable the solution to effectively expand the depth and breadth of visibility in transaction patterns.
CyberSource's Managed Risk Services combines the Decision Manager with fraud consulting services to assist and optimise fraud management operations via performance monitoring. With a tailored solution, as well as ongoing monitoring and tuning according to specific business needs and market conditions, Alipay benefits from fewer orders needing to undergo manual review.
According to Tu, the implementation of Cybersource's solutions has enabled Alipay to "better understand best practices in global risk management and build an efficient system for its extensive user base... therefore allowing it to stay ahead of its competitors."
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