Navigating the complexity, fraud, and risk of cross-border transactions in APAC

While expanding into new markets, businesses face the dual challenge of capitalizing on opportunities while countering the rising tide of fraud. Cross-border transactions inherently involve multiple banks, varied payment methods, and differing regulatory frameworks, creating a complex landscape that fraudsters are eager to exploit.

The governments of APAC countries seek to promote cross-border connectivity using digital wallets to support greater convenience for travellers as well as faster, cheaper international transfers. The central banks of Indonesia, Thailand, Malaysia, Singapore, and the Philippines signed a memorandum of understanding in 2022 to make interoperable regional payment connectivity a reality by 2025.¹

For the continued growth of eCommerce and cross-border trade in this region, maintaining consumer trust is essential. High-profile fraud incidents can deter consumers from engaging in cross-border transactions, so effective fraud prevention measures and real-time detection are crucial to ensuring a secure payment environment.

The unfamiliar buying patterns and localized payment rails that characterize these transactions require advanced fraud detection. A proactive approach ensures you can swiftly identify and mitigate fraudulent activities, safeguarding your revenue and reputation.

Local businesses in APAC are experiencing renewed streams of international visitors who prefer to use familiar payment methods from their home countries, such as foreign-issued credit cards and popular mobile wallets. High-growth markets like China, India, and Korea are particularly affected by this trend.

Success in these markets hinges on forming strong regional partnerships and networks that integrate local payment rails. This integration enables quicker market entry and efficient revenue capture, ensuring you can meet the expectations of international customers seamlessly.

Our risk management solutions make it simple to align with regional priorities using state-of-the-art AI and machine learning (ML). By incorporating our fraud and risk management solution into your fraud prevention strategies, you can ensure you’re well-equipped to handle the intricacies of cross-border transactions. This not only minimizes risk but also fosters trust among international customers, paving the way for sustained growth and profitability.

1. ML and AI: Decision Manager uses machine learning and artificial intelligence to analyse vast amounts of data to identify emerging fraud patterns and adapt to new types of fraud.
2. Positive behaviour risk scoring: Decision Manager assigns risk scores based on a customer’s transaction history, including those with a good shopping history, a bad shopping history, or none at all.
3. Global fraud detection network: Visa’s global network allows it to share information about fraudulent activities and trends with financial institutions and merchants around the world. This collaborative approach helps to quickly identify and respond to cross-border fraud threats.
4. Real-time monitoring and analytics: By analysing transaction data from around the world, Decision Manager can identify suspicious activities and flag them for further investigation.
5. Authentication tools: Add an extra layer of security by requiring cardholders to authenticate themselves during checkout with 3DS, helping to ensure that the person making the transaction is the legitimate cardholder.
6. Tokenization: Replace sensitive card information with a unique identifier or token to help reduce the risk of it being stolen and used fraudulently in cross-border transactions.
7. Chargeback management: Verifi’s post-purchase solutions help merchants manage chargebacks and reduce the financial impact of fraud.
    

By leveraging these tools and technologies, our fraud and risk management solutions help minimize the risk of cross-border payment transaction fraud, protecting both merchants and consumers from financial losses and enhancing the security of the payment ecosystem.

Implementing robust fraud prevention measures and leveraging advanced technologies are critical steps in mitigating these risks. Our team of experts can help you design a strategy for this dynamic and rapidly evolving region.