In the ever-evolving world of digital commerce, maintaining customer trust while keeping fraud at bay is crucial for the success and growth of your business. And with increasing online transactions, merchants must find effective ways to prevent fraud and protect their customers without sacrificing seamless user experiences.
Pre-auth, short for pre-authorization, refers to the stage in the payment processing workflow where a transaction is assessed and approved (or declined) before being submitted for actual payment authorization. Utilizing pre-auth fraud solutions help merchants safeguard their business against fraudsters and optimizes payment processing, resulting in a frictionless customer experience.
Benefits of Pre-Auth
According to Forter’s first-party data, customers integrating our Trust Platform pre-auth have seen a 7-9% margin increase. But protecting the customer experience and recovering lost revenue aren’t the only benefits. Embracing pre-auth in your workflow offers numerous other advantages that can elevate your business and recover revenue lost to false declines and chargebacks, including:
- Better decision-making: Embracing pre-auth means making better decisions about which transactions to approve or decline. This improved decision-making process helps businesses reduce fraud and increase customer trust.
- Shifted 3DS liability: When merchants go pre-auth, they can shift the liability of 3D Secure (3DS) transactions to the issuing bank. This added layer of protection further reduces the risk of fraudulent transactions.
- Increased conversions: Pre-auth can help increase conversions by streamlining the checkout process, reducing friction, and enabling more genuine customers to complete their purchases without obstacles.
- Simplified workflow and reduced costs: Pre-auth integration simplifies the payment processing workflow by declining bad transactions before they are sent to authorization. This saves time and resources and reduces the overall cost of payment processing.
- Enhanced 3DS decision-making: Implementing a solution pre-auth helps determine whether a transaction should be sent through 3DS. It can also provide recommendations for exemptions, further optimizing the payment process and reducing friction for customers.
Implementing Forter’s Trust Platform pre-auth is an essential step for merchants looking to improve decision-making, reduce fraud, and delight their customers. By integrating Forter pre-auth, businesses can enjoy increased margins, streamlined workflows, and accelerated revenue growth. In today’s competitive digital landscape, adopting Forter’s Trust Platform can give your business the edge it needs to succeed – and build increased trust and confidence with good customers.
Forter’s Trust Platform
Forter’s Trust Platform is designed to fight fraudsters and delight customers at every interaction, from account creation and checkout to loyalty programs and returns. Digital commerce relies on trust, and Forter’s Trust Platform ensures trust is maintained throughout the customer journey.
Built on three core elements, our platform can assess trust instantly for every digital interaction:
- Identity Graph: Forter knows who’s behind each interaction—drawing on our first-party Identity Graph. Identities that are new to you are known to us, so you can block more fraudsters and approve more legitimate transactions from good customers.
- Network Effects: Instead of fighting fraud alone, you can fight fraud as a consortium with the world’s leading brands. In the past 12 months, over 200,000 businesses trusted Forter to process $350 billion in gross merchandise value. When you partner with Forter, you instantly become part of this network.
- Decision Engine: We use the speed of AI to make decisions, the sophistication of machine learning to detect patterns across vast datasets, and the savvy of fraud experts to continuously update our models. We deliver 99% of decisions in under 400 milliseconds so that you can offer omnichannel experiences.
The Trust Platform addresses every critical decision across the digital commerce journey. We simplify every aspect of your operation, so you can focus on what matters most. On average, merchants experience a 72% reduction in chargeback rates and a 46% reduction in false declines after switching to Forter.
Want to calculate your potential ROI with Forter? Visit our ROI Calculator to see how much revenue you’re leaving on the table.
