Measure What Matters Quiz - Chargebacks & Approval Rates

Why can thinking in terms of the story of a transaction help a fraud analyst find the right balance between approving and declining on the level of individual transactions?

Select all that apply.

It makes the decision feel less pressured

It helps fraud analysts think through all the factors which indicate legitimacy or fraudulent behavior in an individual transaction and weigh up which story is more probable

It pushes the team to identify weaknesses or loopholes in the fraud system

It makes it easier to explain the decision to other people

It drives a cycle of constant analysis and improvement

Which of these factors might play a role in finding the optimal overall balance between chargeback rate and approval rate for your company at this time?

Select all that apply.

Bank authorization rate

Actual risk factors and fraud trends

Your confidence in your fraud systems and accuracy

Your company’s risk profile

3D Secure

Business priorities

Business situation

Which payment processor you use

What’s an important factor in determining whether a change to your fraud systems has been overall positive or negative?

Select only one.

How many new users come to your site or app

Whether your company is willing to offer gift cards

Track and measure its impact on chargeback rate and approval rate

Why is it important for other departments to understand how the balancing act between chargeback rate and approval rate works?

Select only one.

Because the way in which fraud teams attempt to optimize this balance impacts the work and results of other departments - sometimes significantly

Because chargebacks are an important metric for many other departments

Because every department needs to understand other departments’ key metrics

How can fraud fighters have a positive impact on the customer experience beyond the point of transaction approval or decline?

Select only one.

Invest effort in making approval rates as high as possible without causing chargeback rates to rise to reach a level close to the chargeback monitoring program level

Examine the entire customer journey and see where expert understanding of customer behavior and identities can help streamline customer experience such as at login, signup, storing personal information, returns processes etc.

Streamline manual review processes as much as possible to cut the speed of manual review times

Why is it so important that the entire fraud team be involved in the process of finding the optimal balance between chargeback rate and approval rate - not just the fraud leader?

Select all that apply.

It’s a complex process in which creative thought is valuable

The entire fraud team is interested in this process

Helping fraud analysts understand how their work impacts the bigger picture makes it more likely they will want to stay in fraud prevention longer

Different team members have different levels of experience with different types of attacks and threats, any and all of which may be useful

It’s important context for fraud analysts when they make decisions on individual transactions, and when they make changes to systems’ rules or models

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Lesson 6