Rule & Decision based Systems
Software having Custom rules and case management capabilities are based on business rules and can automatically tag the order as “accept”, “reject”, or “review”.

An automated decision system for managing online orders reduces the number of orders, which require manual review, and speeds up the manual review process by consolidating all available decision data for manual review. More merchants are implementing these systems under a managed services model, leveraging the fraud management expertise and resources of experienced vendors. These systems allow merchant's business managers to modify decision rules easily without assistance from internal IT staff or external third parties. Without this ability, a merchant is unable minimize reject rates, review costs or fraud rates.

Neural Network based Fraud Prediction
This type of software relies on a patented process that blends multiple risk models and assesses attributes of the transaction to determine the fraud risk associated with the order. It uses statistical and artificial intelligence based modeling to maximize fraud detection and minimize false-positives. The results include a numerical risk score as well as risk profile codes indicating the types of risk detected by the system.

Address Verification
Many merchants have automated rules to accept, reject, or review orders based on AVS (Address Verification Service) results. AVS is built-into the payment authorization process. AVS only checks the numeric data in a street address and the postal code on the order and compares this with the information on the record at the cardholder’s bank.

Card Verification Number
The card verification number is the three or four digit code printed (not embossed) on the back of most credit cards and on some cases in the front of the card. Validation based on this number is available at the time of payment authorization to confirm the purchaser is in possession of the card. While also not full proof, requesting CVN goes a step beyond AVS in screening for fraud (with the trade-off being an extra step in the check-out/payment process which may impact sales conversion).

Issuer Authentication (VbV,
SecureCode)
There is an increase in the use of new payer authentication programs offered by Card Associations. These programs require a credit card user to enter a password during the checkout process to authenticate the transaction (making it more difficult for lost or stolen cards to be used for online purchases).