High-risk merchants always face the threat of financial fraud in processing bulk payments daily. Fraud scoring is an advanced technology to prevent daily suspicious transactions without failure. It is an efficient system backed up by artificial intelligence used by payment gateways to help merchants from risk-prone industries. This blog is an insightful overview of the concept and function of a fraud scoring system to help every merchant understand its significance in the real business world. What is fraud scoring? Let us start with the meaning of fraud scoring to grasp its concept better. Fraud scoring is an automation-driven system to quantify the risk level in daily transactions. Based on several indicators, the automated tools give transaction scores that decide its risk level. It is also called transaction risk scoring. Example of fraud scoring – If a transaction takes place from a customer, i.d., blacklisted in the past, the transaction will be rejected. The scoring syst
