Third-Party Fraud Service

Integrate Fraud Prevention Into Your Payment Workflow

HostedPCI Third-Party Fraud Services helps businesses incorporate fraud detection and transaction risk assessment into their existing payment workflows.

Through integrations with providers such as Kount, Accertify, MaxMind minFraud, and ACI Worldwide (ReD), HostedPCI enables merchants to submit fraud-check parameters and receive risk assessment results through supported payment integrations.

By combining third-party fraud detection with HostedPCI’s payment tokenization and multi-gateway infrastructure, businesses can evaluate transaction risk while limiting unnecessary exposure to cardholder data.

HostedPCI is a PCI DSS Level 1 Service Provider. We provide the payment infrastructure and integration capabilities, while the selected fraud provider performs the risk analysis.

What Are Third-Party Fraud Services?

Third-party fraud detection services help businesses identify potentially fraudulent payment transactions by analyzing information beyond basic card verification checks.

Depending on the provider, fraud assessment may consider transaction history, billing details, IP addresses, device information, geographic indicators, and behavioral patterns.

Some providers use machine learning and risk-scoring models to identify unusual activity or transactions that may require additional review.

HostedPCI connects supported fraud services with existing payment workflows, allowing merchants to exchange relevant transaction information and receive fraud assessment results.

The merchant remains responsible for its fraud prevention policies and payment decisions.

How HostedPCI Third-Party Fraud Detection Works

The fraud evaluation process depends on the selected provider and payment integration. Some workflows assess risk before authorization, while others use gateway responses during the fraud review.

Step 1: Customer Initiates a Payment

A customer submits payment information through a supported HostedPCI integration.

HostedPCI handles the cardholder data and provides the merchant with a token for use in its payment workflow.

Step 2: Submit Fraud Detection Parameters

When the merchant submits an Authorization or Sale request, the integration can include the fraud detection parameters required by the configured provider.

These may include transaction details, billing information, device-related data, and other supported risk indicators.

Where the fraud provider requires device data collected through a browser script, the appropriate data collection script is added to the merchant’s checkout page.

Step 3: Fraud Provider Evaluates the Transaction

HostedPCI exchanges the required information with the configured fraud detection provider.

The provider evaluates the transaction using its risk assessment methods and returns the available fraud-check results.

Depending on the integration, this assessment may occur before payment authorization or incorporate gateway verification results.

Step 4: Merchant Reviews the Fraud Results

HostedPCI makes the supported fraud assessment results available through the configured integration.

The merchant uses the information and its own fraud policies to determine the appropriate action, such as proceeding with the transaction, requesting additional review, or withholding an eligible payment action.

Step 5: Payment Processing Continues

The payment follows the configured gateway workflow based on the integration and applicable merchant decisions.

Fraud assessment and payment authorization are separate processes. A favorable fraud result does not guarantee that the card issuer will approve the transaction.

HostedPCI Fraud Detection Integrations

HostedPCI connects supported third-party fraud detection services with payment processing workflows, allowing merchants to incorporate external risk assessments into their payment infrastructure.

Available fraud parameters, evaluation sequences, and response handling depend on the selected provider and integration.

Kount Fraud Detection Integration

HostedPCI supports integration with Kount to help merchants evaluate transaction risk.

Depending on the configured workflow, HostedPCI exchanges applicable transaction information with Kount and makes fraud assessment results available to the merchant.

For supported integrations, HostedPCI also provides mapping of selected Address Verification Service (AVS) and Card Verification Value (CVV) response codes.

Because payment gateways and fraud providers may use different verification codes, HostedPCI maps the supported values into the format required by Kount.

The integration can also support configured User Defined Fields (UDFs) for additional fraud assessment information.

Additional Fraud Provider Integrations

HostedPCI also supports integrations with third-party fraud services including:

• Accertify: Fraud and risk assessment services used to evaluate payment transactions.
• MaxMind minFraud: Transaction risk scoring using available payment, IP, device, and other fraud indicators.
• ACI Worldwide (ReD): Fraud prevention and transaction risk management capabilities.

Each provider has its own technical requirements, supported data fields, and response formats.

Businesses should confirm the available functionality for their selected fraud provider during integration planning.

Key Features and Business Benefits

Fraud Detection Within Payment Workflows

Integrate supported third-party fraud services with HostedPCI’s payment APIs.

Businesses can incorporate fraud assessment into eligible payment workflows without building every fraud provider connection independently.

Look Beyond Basic Card Checks

Fraud providers can assess IP addresses, device data, transaction patterns, and other signals beyond AVS and CVV results, helping businesses identify transactions that may require additional review.

The available risk indicators depend on the provider and integration.

AVS and CVV Response Mapping

HostedPCI supports mapping applicable AVS and CVV verification responses between payment gateways and selected fraud providers.

For supported Kount workflows, this includes translating gateway-specific verification codes into the expected fraud provider values.

Custom Fraud Detection Parameters

HostedPCI’s Payment API supports fraud-check parameters for eligible Authorization and Sale requests.

Depending on the provider, merchants can submit additional transaction information and configured fields used during fraud assessment.

Multi-Gateway Payment Integration

HostedPCI supports connections to multiple payment gateways and selected third-party fraud providers.

Businesses can incorporate compatible fraud detection services into their payment infrastructure while maintaining flexibility over their payment gateway relationships.

PCI DSS Scope Reduction

When combined with HostedPCI’s hosted payment collection and tokenization capabilities, businesses can reduce the number of internal systems that directly handle cardholder information.

This may help reduce PCI DSS scope depending on the integration and overall payment environment.

Fraud detection does not replace PCI DSS requirements or eliminate the merchant’s remaining compliance responsibilities.

Fraud Detection vs. 3D Secure 2 Authentication

Fraud detection and 3D Secure 2 provide different types of payment protection.

Third-Party Fraud Detection evaluates transaction risk using information such as transaction characteristics, device indicators, IP addresses, and other fraud signals.

3D Secure 2 Authentication helps verify the cardholder’s identity through the card issuer, using frictionless authentication or an additional verification challenge when required.

Businesses may use both technologies as part of a layered payment security strategy, depending on their payment providers and supported integrations.

For cardholder authentication requirements, explore HostedPCI’s 3D Secure 2 solution.

Who Can Benefit From Third-Party Fraud Services?

E-commerce Businesses

Online retailers can incorporate transaction risk assessment into checkout workflows to help identify suspicious purchases before completing eligible payment actions.

SaaS and Subscription Platforms

Software providers and subscription businesses can use supported fraud checks to evaluate payment risks associated with new purchases and eligible stored-payment transactions.

Travel and Hospitality Businesses

Travel agencies, booking platforms, and hospitality providers can incorporate fraud screening into online booking workflows, particularly for higher-value and cross-border transactions.

Use Case: Fraud Assessment for an Online Retailer

An online retailer processes customer payments through HostedPCI and wants additional fraud screening for transactions that may present elevated risk.

The retailer uses a supported third-party fraud provider to assess transactions as part of its payment workflow.

With HostedPCI Third-Party Fraud Services:

1. Collect: The customer enters payment details through a HostedPCI integration.
2. Submit: The retailer initiates a payment request with the fraud parameters required by its configured provider.
3. Evaluate: HostedPCI exchanges the applicable transaction information with the fraud provider.
4. Receive Results: The provider returns the available risk assessment information through the configured integration.
5. Decide: The retailer applies its fraud policies to determine whether the payment should proceed or require additional review.
6. Process: The transaction follows the configured gateway workflow, with the card issuer making the final authorization decision.

This allows the retailer to incorporate external fraud assessment into its payment operations without developing a separate integration from the beginning.

This is an illustrative example. Available fraud decision points depend on the provider and payment integration.

Need to add fraud detection to your payment workflow?

Contact HostedPCI to discuss your fraud provider, payment gateway, and integration requirements.

Third-Party Fraud Services FAQs

What are third-party fraud detection services?

Third-party fraud detection services analyze payment transactions using risk indicators to help businesses identify potentially fraudulent activity.

Depending on the provider, these indicators may include transaction patterns, device information, IP addresses, billing details, and other available data points.

Does HostedPCI provide its own fraud scoring engine?

No. HostedPCI integrates with specialist fraud detection providers, who perform the risk analysis.

HostedPCI handles the exchange of payment and fraud data within the configured payment workflow.

Which fraud detection providers does HostedPCI support?

HostedPCI supports integrations with Kount, Accertify, MaxMind minFraud, and ACI Worldwide (ReD).

Available features and technical requirements depend on the selected provider and integration configuration.

How does HostedPCI integrate fraud detection with payment processing?

HostedPCI’s Payment API supports fraud detection parameters within eligible Authorization and Sale requests.

The configured integration exchanges the required information with the fraud provider and makes supported assessment results available within the payment workflow.

Is fraud detection performed before or after payment authorization?

It depends on the provider and integration.

Some workflows evaluate transaction risk before authorization. Others incorporate information returned by the payment gateway, including AVS and CVV verification responses, into the fraud assessment.

The processing sequence is determined by the configured integration.

What are AVS and CVV response mappings?

Payment gateways may return address and card verification responses using different codes.

Certain fraud providers require these codes to be translated into their expected formats.

HostedPCI supports response mapping for selected integrations, including supported Kount workflows.

Can merchants make their own fraud decisions?

Yes. Merchants can use supported fraud assessment results to determine how eligible transactions should be handled according to their own fraud policies.

Available actions depend on the fraud provider and configured payment workflow.

Can third-party fraud detection reduce chargebacks?

Fraud detection may help businesses identify suspicious transactions and reduce certain fraud-related chargebacks.

Results depend on the provider, merchant policies, transaction characteristics, and other factors. Fewer chargebacks are not guaranteed.

Does fraud detection improve payment approval rates?

Fraud detection can help businesses make more informed payment decisions and may reduce unnecessary rejection of legitimate transactions.

However, it does not guarantee higher authorization rates. The card issuer ultimately determines whether to approve or decline a payment.

Does HostedPCI support fraud detection with multiple payment gateways?

Yes, for supported combinations.

HostedPCI supports multiple payment gateways and integrations with selected fraud detection providers.

Specific gateway and fraud-provider combinations, available parameters, and processing sequences must be confirmed for the intended integration.

Do businesses need an account with the fraud provider?

Account requirements depend on the selected fraud provider and commercial arrangement.

Any required provider credentials, account setup, and onboarding steps are established during implementation.

Is fraud detection the same as 3D Secure 2?

No. Fraud detection assesses transaction risk, while 3D Secure 2 is an authentication protocol used to help verify cardholder identity.

Both may be used together where the configured payment integrations support them.

Does third-party fraud detection eliminate PCI DSS requirements?

No. Fraud detection does not replace PCI DSS obligations.

HostedPCI’s hosted payment collection and tokenization services may help reduce PCI DSS scope depending on the merchant’s overall integration and payment environment.

Integrate Third-Party Fraud Detection With HostedPCI

HostedPCI helps businesses incorporate external fraud assessment into their existing payment workflows through supported fraud service and payment gateway integrations.

Whether you use Kount, Accertify, MaxMind minFraud, or another supported provider, HostedPCI can help evaluate the integration requirements.

Contact HostedPCI to discuss your fraud detection needs.

Explore HostedPCI Fraud Detection API Documentation for technical integration details.