Experts across the payments industry predict that fraud will continue to be a hot-button issue in the next year. It’s important, then, that payment platform providers ensure they’re not only meeting risk-mitigation and compliance requirements but also understand the trends surrounding fraud and compliance. Factors Affecting Compliance Though maintaining compliance is a relatively cut-and-dry task, the implications of elevated fraud risk and more are worth attention. Several key points surround risk management and compliance entering 2020:
- Risk mitigation and compliance requirements require a full-time headcount devoted to focusing on payment infrastructure maintenance. It’s a full-time job. As fraud risks continue to escalate and the amount of business conducted through e-commerce and other modern payment methods increases, it’s not enough to simply be compliant. You need a full-time team dedicated to ensure you’re adaptable and maneuverable in the face of a shifting payments landscape.
- Both fraudsters and fraud-prevention services are getting smarter, raising the stakes surrounding risk management and compliance. Gone are the days of unilateral threats and simple solutions – though fraud prevention efforts are becoming more robust, so are the methods and arenas that fraudsters are leveraging to get after critical payments data. With more commerce being conducted online and through invisible payments, etc., the stakes are being raised almost daily.
- Balancing customer experience with data security will continue to be a challenge moving forward, and innovation will rise up to respond to this hurdle. Customers want to feel secure, but they don’t want the implementation of that security to take away from easy, seamless transactions, particularly in the case of e-commerce, invisible payments and other forms of payment designed to make the payment experience more compatible with the customer’s vision of a wholly integrated experience. You can’t sacrifice the experience or customer security, making striking a balance between the two critical.
- Key areas to monitor include the utilization of AI in fraud prevention and leveraging fraud data to create actionable business insights. AI is playing an increased role in nearly every aspect of modern society, and the payment experience is no different. AI solutions will continue to evolve to assist in fraud-prevention efforts, allowing payments providers a method of providing security without sacrificing the ability to both innovate and take action on business insights provided by collected fraud data.
Amaryllis follows regulations that will continue to increase to match increased fraud risk, meaning you’ll need to adapt to keep up and aid in the protection of both your business and consumers. To learn more about the Amaryllis platform, visit amaryllispay.com/platform/.