dLocal unveils new suite of fraud management tools
dLocal, a technology-first payments platform that enables global enterprise merchants to connect with billions of consumers in emerging markets, has introduced its latest developments for risk management.
The first product in the stack is Smart Defense, an advanced, custom-built solution that fights fraud based on enhanced data and machine learning models. The program enhances its prediction capability by inspecting a high volume of transactions, not only by blocking suspicious payments but also by approving more genuine purchases.
“The more attacks it stops, the smarter it gets,” says Nicolas Aliberti, VP of Fraud Prevention at dLocal. “SmartDefense quickly goes through a massive number of data points such as shopper information, shipping address, item purchased, industry, and device ID, among others, to assess risk and define scoring rules for future transactions.”
Merchants can subscribe to Smart Defense as a standalone feature even when processing their payments through a different PSP. “No other payment facilitator has such a large database of online transactions in emerging countries, where fraud is a critical challenge. Even with another provider, it is a wise option to let dLocal handle your risk management in those markets,” adds Aliberti.
Adjacent to Smart Defense, dLocal presents Defense Manager, a user interface that offers merchants the flexibility to change a predefined set of rules. “Choose the tolerance according to your risk appetite. Decide, for example, which transactions should apply 3D Secure and when to be less conservative in a user-friendly dashboard,” continues Aliberti. This tool puts your fraud team in charge of decision-making and is ideal for companies that already have industry-specific fraud intel and dedicated teams.
Finally, with Chargeback Guarantee, merchants delegate all fraud management responsibilities and costs to dLocal. For a transparent fee based on the volume of approved transactions, online companies without a dedicated fraud management team can leave it to dLocal to configure specific rules and cover all chargeback costs. “As with all our products, we want to make fighting fraud a simple process, even with complex matters such as chargebacks and disputes. Chargeback Guarantee will keep conversion rates high and eliminate the risk of penalties from card schemes. All the merchant needs to worry about is growing their business,” concludes Aliberti.
dLocal’s fraud prevention technology, powered by artificial intelligence, with machine learning algorithms such as XGBoost and deep neural networks checks in real-time and under 100 milliseconds for potentially fraudulent transactions. Each merchant and industry have tailor-made machine learning models that are retrained almost on a daily basis with petabytes of information on millions of transactions from emerging markets. That enables merchants to grow their business, stop fraud and create more revenue from legitimate transactions. dLocal’s exclusive reach and experience make these the most sophisticated fraud prevention systems for emerging markets.
