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Vendor Selection (Operator Field Manual)

Pick tools by problem and volume tier, not by brand fame. Start with built-ins, then add only what you can measure.

What Matters (5 bullets)​

  • Define the problem first (fraud guarantees vs IDV vs alerts vs chargeback ops).
  • Match tool model to volume: guarantees for low-capacity teams; rules/decisioning for control.
  • Start with processor-native fraud tools; upgrade when false positives or losses justify it.
  • Run a scoped pilot with a clean A/B split; measure auth, fraud, chargebacks, support tickets.
  • Contract for exit: data export, token portability, and notice periods.

Minimum Viable Stack by Volume​

  • Under $100k/mo: Processor fraud tools (Radar/RevenueProtect/etc.), AVS/CVV, 3DS for high-risk only, enrichment (Order Insight/Consumer Clarity).
  • $100k–$1M/mo: Add alerts (RDR + Ethoca/CDRN), consider guarantee vendor pilot on a segment, start IDV for high-risk flows.
  • Over $1M/mo: Dedicated fraud tool (rules + ML), alert automation, IDV orchestration, dispute vendor if volume-heavy.

Tool Categories and When to Use​

  • Fraud guarantees (Signifyd/Forter/Riskified): If you lack headcount and want liability off your plate; watch approval impact and fees.
  • Rules/decisioning (Sift/Kount/Fraud decision APIs): When you want control and tuning; requires analyst time.
  • Processor-native rules (Stripe Radar, Adyen Risk, Braintree): Use first; tune before buying anything else.
  • IDV/KYC (Persona, Sardine, Alloy): For account creation/ATO issues; not for card-present fraud.
  • Alerts/Enrichment (Verifi RDR/CDRN, Ethoca, Order Insight, Consumer Clarity): For chargeback deflection and statement clarity.
  • Chargeback management vendors: For high dispute volume; insist on win-rate by reason code and CE3.0 capability.

Pilot Plan (2–4 weeks)​

  • Scope: one segment (country/method/traffic slice). Keep a clean control.
  • Metrics: auth rate, fraud rate, chargeback rate, false positives, customer support tickets.
  • Success: net revenue lift (approved-good – fraud/fees) with stable CX (tickets flat/down).
  • Exit: documented rollback; keep original routing ready.

Ask Before You Buy​

  • Pricing: per tx, % of GMV, or % of “approved/fraud covered”? Any minimums?
  • Data ownership: Can you export decisions, scores, device data?
  • Portability: How to turn off, and how fast? Any penalties?
  • Coverage: Brands/regions supported? 3DS support? CE3.0 data support?
  • SLA: Uptime, response latency, support response times.

Where This Breaks​

  • No control group: you can’t prove lift.
  • Blended traffic in a “pilot” hides false positives.
  • Guarantee vendors driving lower auth to reduce their liability.
  • Overlapping tools (processor rules + vendor rules) double-blocking good orders.

Next Steps​

Picking your first vendor?

  1. Check minimum stack by volume - What you actually need
  2. Understand tool categories - Guarantees vs rules vs alerts
  3. Plan your pilot - Scoped test with control

Evaluating a specific tool?

  1. Ask before you buy - Pricing, data, portability
  2. Watch for pitfalls - No control group, double-blocking
  3. Run clean A/B - Measure auth, fraud, chargebacks

Need detailed evaluation?

  1. Review selection guide - Full process
  2. Explore vendor landscape - Market overview
  3. Set up experimentation - Testing framework