NMI Integration Stops Payments Fraud in Its Tracks

Payments Fraud Is Getting Costlier and More Sophisticated

As payments and commerce continue to digitize and the landscape becomes more complex, opportunities for fraudsters are growing. According to research from the Association for Financial Professionals, 80% of businesses are targeted by some type of payments fraud, and almost 40% recover less than 10% of the total funds lost. At the same time, fraud-as-a-service and new AI-powered tools are available on the dark web, making it easier than ever for bad actors to launch sophisticated attacks.

To combat the growing threat, your merchants need better fraud protection systems. While some fraud, like refund abuse, can’t be stopped at the source, other types, like stolen cards, identity theft and serial charge-back abuse can. That’s where Kount comes in.

Protecting Your Merchants From Fraud With Kount

Kount is an advanced, AI-powered fraud prevention tool you can resell to your merchants as one of NMI’s value-added extensions. At the heart of the integration is Kount’s ability to automatically and invisibly scan every transaction in the blink of an eye, rooting out and zapping fraud, reducing false positives and saving your merchants money and headaches.

To do that, the system goes through five basic steps every time one of your Kount-protected merchants receives an order.

Step 1: Once a payment is made, the transaction data is passed securely to Kount.

Step 2: Kount’s unique AI-powered screening system performs real-time analysis of the transaction data and compares it against a proprietary global database of over 30 billion transactions.

Step 3: The scan results are used to generate a Kount Omniscore — a safety rating that accurately assesses how risky a transaction is based on 200+ variables.

Step 4: The scored transaction is passed through a set of checks with customizable thresholds that merchants can adjust to determine which transactions are approved, which are declined and which are quarantined for further review.

Step 5: The data and final outcome are used to make Kount’s model better, ensuring each transaction and each stopped attack help make the next scan even more accurate and secure.

That might sound like a complex and confusing process, but it happens entirely in the background and finishes in just 250 milliseconds, ensuring Kount protects your merchant’s transactions without negatively impacting their speed or the quality of customer experience.

What Are the Benefits of Kount Fraud Tools?

There are a lot of anti-fraud tools on the market, and merchants have no shortage of choice. So what makes Kount special? The following are just some of the key reasons Kount stands out and pushes payments fraud protection to the next level.

Kount is Powerful

Kount uses advanced artificial intelligence and machine learning (ML) to screen transactions more thoroughly, catch more fraud and minimize false positives. But Kount isn’t just any AI-powered tool; its unique two-pronged approach uses both supervised and unsupervised ML to create the most complete turnkey solution available today.

Supervised ML uses the tens of billions of transaction and customer data points Kount has access to from 16+ years as a leader in fraud screening and from partnerships with other industry leaders like Equifax.

Unsupervised ML takes Kount to the next level, enabling the AI to analyze brand-new, never-before-seen transaction data from outside the global database. That allows you to analyze each new transaction your merchants process more deeply in real-time. The data can also be used to help Kount learn. Both are major advantages over other AI screening tools.

With the two streams combined, Kount can offer the most accurate real-time transaction screening and risk scoring in the industry, generating results you can trust and automation you can depend on.

Kount Is Easy 

Merchants want great fraud protection, but 66% struggle to dedicate enough internal resources to fraud management, and 54% have a hard time leveraging tools. That’s why we’ve made our Kount integration so easy to resell, integrate and use.

To get started, Kount just needs to be toggled on in the merchant portal, so there’s no additional onboarding or friction. From that point on, the merchant’s transactions will be protected by the industry’s most sophisticated fraud detection tool.

Kount’s seamless integration into the merchant dashboard makes it easy for merchants to set their custom risk screening rules, review flagged or automatically canceled transactions and see all of Kount’s previous decisions and risk scores.

Kount Is Flexible

Kount provides maximum flexibility, enabling your merchants to ensure their fraud protection is fine-tuned to match their risk appetites, their business needs and the unique profiles of their verticals and customers.

Your merchants can easily customize the thresholds that Kount uses to determine whether a transaction should be approved or declined, including the Kount Omniscore, transaction amounts, locations, device information and more.

Merchants can also flexibly choose how much automation they want, whether they’re putting decision-making entirely in Kount’s hand or using it as a supplement for traditional manual reviews.

Kount Is Proactive

Kount stands out as the most proactive fraud management solution on the market because of its blend of supervised and unsupervised machine learning paired with easy-to-understand reporting.

Thanks to its unsupervised ML, Kount can react and adapt to new and evolving threats far better than systems that can only make decisions based on old data. That helps keep your merchants’ defenses one step ahead of the bad guys.

Kount’s reporting tools enable merchants to quickly gain a clear picture of what their fraud exposure looks like and how the system is responding. That allows them to refine their fraud screening rules as the industry (and attackers) evolves.

Kount Is Profitable

Kount is a value-added service that enables you to protect your merchants and open a new source of monthly recurring revenue at the same time. And, with 60% of merchants planning to spend more on anti-fraud tools in the near future, there has never been a better time to offer your merchants the most effective automatic screening solution available.

It also boosts your merchants’ bottom line since protecting merchants from payments fraud also protects them from the inevitable losses that occur when funds are clawed back. Kount also minimizes false positives, helping merchants recapture revenue that would’ve been lost when frustrated customers turn elsewhere.

Finally, by letting merchants rely on automated decision-making more often, Kount frees up the time and financial resources merchants have traditionally had to put into manual reviews. In short, Kount is a financial win-win for both you and your customers.

Kount has the power to significantly improve your merchants’ fraud management abilities and to get started, all you have to do is turn it on. To find out more about everything Kount can do for your customers or how to set up a free trial, reach out to a member of our team.