Measure What Matters Quiz - Measuring Approval Rates

Why should keeping approval rates high matter to fraud fighters?

Select all that apply.

Fraud fighters are perfectionists by nature

Low approval rates mean good customers are being turned away, which is terrible customer experience

Low approval rates mean good customers are being turned away, which means the fraud checks are costing the company money

All fraud fighters are measured on approval rate as a KPI

Showing commitment to revenue generation helps boost the perception of the importance and value of fraud fighters’ work within their company

Why can’t fraud teams focus exclusively on ensuring approval rates are high?

Select all that apply.

It’s not interesting enough to keep fraud fighters stimulated

Approval rates are only one important metric, which must be balanced against others

Over-emphasis on increasing approval rates can result in chargeback rates becoming too high

Why might it be difficult to approve a legitimate transaction?

Select only one.

Good customers often accidently show signs that might be considered suspicious in other contexts

Your team might have hit its approval quota already

It’s never difficult, you can always approve legitimate transactions

How do you calculate approval rate?

Select only one.

Number of initiated orders divided by the number of approved orders

Number of approved orders divided by the total amount of initiated orders

Number of approved orders multiplied by the total amount of initiated orders

Why is it worthwhile for your team to understand both the bank authorization rate and its impact on your approvals, as well as your own internal approval rate?

Select all that apply.

It’s valuable to understand the elements of your company’s overall approval rate, for the full picture of what’s happening to your customers on your site or app

There are steps that fraud and payments teams can take to improve bank authorization rates, improving everyone’s metrics

Learning more about the payments landscape gives fraud fighters a potential alternative career path

There’s no point understanding it as there’s nothing your team can do to influence the bank

How can 3D Secure impact your overall approval rate?

Select all that apply.

3DS has no impact on a company’s overall approval rate

Some customers struggle with 3DS and so the transaction is less likely to go through successfully

3DS can be used to “save” transactions your fraud systems would otherwise decline as too high risk

3DS always hurts approval rates because it always involves friction

Some banks like 3D Secure and are more likely to authorize a transaction with successful 3DS authentication, boosting your overall approval rate

Some banks dislike 3D Secure and are less likely to authorize a transaction which has been through 3DS, harming your overall approval rate

Some banks take a nuanced approach to 3DS in the context of other details about the transaction, and the result may impact the likelihood of authorization

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Lesson 5