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Payment service providers

Overview​

If you integrate Fraugster at the pre-authorization step, you ensure that you send only good transactions for authorization. This allows you to reduce unnecessary costs.

What is Fraugster's role in the data flow?​

To answer this question, let's have a look at a detailed use case.

  1. An end customer attempts a payment from a browser. You collect data about the transaction from the merchant.

  2. You invite the customer to fill out the payment information on the dedicated payment page to finalize the checkout.

  3. The customer submits the payment information for an authorization request.

  4. You forward the collected transaction and payment data to Fraugster for a fraud check in an API request.

  5. You receive an API response from Fraugster in real time. It contains a recommendation on whether the transaction is approved or declined.

  6. Based on Fraugster's response, you have the following options:

    1. If Fraugster approves the transaction, you pass it on to the acquirer and issuing bank for final authorization.
    2. If Fraugster declines the transaction:
    • you return the sync status update frg_declined to confirm that you declined the transaction based on Fraugster's recommendation.
    • you do not return the sync status update frg_declined to indicate that you sent this transaction for authorization in spite of Fraugster's recommendation.

  7. Upon receiving the response from the bank, indicating whether the transaction was approved or declined, you forward the authorization response to the end customer.

  8. You send a sync status update to Fraugster indicating whether the issuer approved the transaction.

    Make sure you return one of the sync status updates:

    • approved - to confirm that the transaction was approved by the issuer.

    • declined - to let us know that the issuer rejected the transaction.

    • declined_fraudscreening - to let us know if the transaction was declined by a different fraud detection solution (only if there is a second fraud detection system in place).

    • error - to inform us that the transaction wasn't authorized due to an error.

      Important

      The statuses approved and declined always require additional information to be sent with them. Read more in Update transactions.

  9. If more information becomes available about the transaction, send an async status update to notify Fraugster. It is important for Fraugster to be aware of any additional status updates in order to maximize the Engine performance. Fraugster provides a wide range of values you can send to update us. Read more in Update transactions.

    The most important async status updates are the ones that indicate if a transaction is fraudulent:

    • chargeback - this status update is relevant for card transactions.

    • fraud_confirmed - this status is suitable for non-card transactions. Inform Fraugster if you concluded a transaction as fraudulent.

    • debt_collection_loss - this status is suitable for payment upon invoice. Confirm if you have written off a transaction as a loss after the debt collection process.

      Important

      The statuses chargeback, fraud_confirmed, and debt_collection_loss always require additional information to be sent with them. Read more in Update transactions.

Read more on how to send status updates in:

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