Along with the EQ8 Score, which looks at a wide range of attributes for each visitor to a website, NS8 has developed the Payment Risk Score (PRS). The PRS evaluates the attributes of a customer's payment and assigns it a risk score, showing the percentage of risk that a payment presents with 100% being the most risky.

How Are Payments Scored?

Each payment may have several risk factors associated with it, or none at all. As a payment's risk factors increase, the EQ8 Score will be lowered and the PRS percentage will increase. 

NS8 has found in many cases, that using the PRS along with the EQ8 Score can help a a merchant identify orders that can be approved or declined quickly based on customer and order profiles. For example, an order where the device is in a different country than the shipping and billing address, which has a high payment risk, is much more likely to be fraud. Inversely, an order that has a low EQ8 Score because the user is a university student, and has a low payment risk score, may help a fraud reviewer approve the order. 

Order Rules for Payment Risk

Many merchants using NS8 Protect™ (formerly Complete Storefront Protection) have established order rules that quarantine orders based on payment risk to process them appropriately.  Our internal research has show that a PRS score between 1% and 10% should be treated as medium risk. Between 10% and 30% orders should be treated as high risk and manually reviewed. Orders with a payment risk greater than 30% are rarely valid and merchants will need to decide how to handle them. The button below will show how to build an order rule for PRS and other attributes.

What are the Payment Risk Factors?

This list below represents many of the payment risk attributes identified by NS8 Protect. They are shown on the Suspicious Orders screen as seen in the  Payment Issues section of the image below.

Payment Risk Attributes

  • None - There was no payment risk found.
  • Transaction originated from a high-risk  country - The country where the user was located when placing the order is considered high risk.
  • The billing address does not match the  country of the majority of customers using that bank identification number - The payment card is associated with a bank that is foreign to the order. For example, the card is issued by a European bank but the order is placed in the United States.
  • The credit card is prepaid - The credit card is a prepaid card and not a revolving charge card. These payment cards historically carry more risk than traditional credit and debit accounts.
  • The device may be being used for multiple transactions - NS8's velocity checks have identified the device as being used for an unusual number of transactions.
  • The customer's email address is from a free service - The email is from a service that is higher risk because it is from a service that is free and requires less verification to establish an email address.
  • The customer's email address indicates high risk - NS8 has found the email address to be associated with high risk activity or on a blacklist or similar fraud screening tool.
  • The shipping address is associated with fraudulent transactions - The shipping address has been identified with fraud in the past and presents a high risk.
  • The shipping address has a postal code not in the city entered - The postal code is incorrect for the city provided by the customer for shipping.
  • Distance from shipping address to the device exceeds 100km - NS8's patented geolocation technology has identified that the customer is physically located an excessive distance from the shipping address. (more than 62 miles)
  • Distance from shipping address to billing address exceeds 100km - The distance between shipping and billing addresses are excessive. (more than 62 miles)
  • The shipping address is not in the country of the I.P. address the transaction originated from - NS8's patented geolocation technology has identified that the customer is physically located in a different country than the transaction appears to be from.
  • The billing address has a postal code not in the city entered - The postal code is incorrect for the city provided by the customer for billing.
  • Distance from billing address to the device exceeds 100km - NS8's patented geolocation technology has identified that the customer is physically located an excessive distance from the billing address. (more than 62 miles)
  • The billing address is not in the country of the I.P. address the transaction originated from - NS8's patented geolocation technology has identified that the customer is physically located in a different country than the transaction's billing address.
  • The payment is rated as medium risk (more than a 10% chance of fraud) - The payment has attributes that indicate a medium fraud risk.
  • The payment is rated as high risk (more than a 25% chance of fraud) - The payment has attributes that indicate high risk. 
  • The payment is rated as an extreme risk (more than a 50% chance of fraud) - The payment has attributes that indicate extreme risk.
  • The user is using a public proxy - The user placed the order while using a public proxy to mask their technological identity.
  • The user is using an anonymous proxy - The user placed the order while using a anonymous proxy to mask their technological identity.
  • The user is originating from a high-risk I.P. address - NS8 has found the I.P. address to be associated with high risk activity or on a blacklist or similar fraud screening tool.
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