Strengthening fraud risk management: A market analysis and policy benchmarking for a payment network.

Challenge

A payment network was looking to restructure its fraud risk management policies. While their existing programs addressed key areas of fraud prevention and monitoring, they lacked a comprehensive view of how their approach compared to current market standards and industry expectations.

The challenge was multi-dimensional. Fraud risk management in payment networks spans multiple ecosystem participants (merchants, acquirers, and issuers), each requiring distinct programs and policies. Without a structured comparison against industry practices, it was difficult to identify where their programs were aligned with market standards, where meaningful gaps existed, and where policy restructuring would have the most impact.

Leadership needed a clear, evidence-based picture of the fraud risk management landscape to make informed decisions about policy development and program design.

Solution

We conducted a comprehensive market analysis comparing the network's fraud risk management programs against those of major industry players across two distinct dimensions: Merchant & Acquirer programs and Issuer programs.

Our analytical framework

We structured the analysis around 5 focus areas:

• Program scope: How networks structure and define their fraud risk management programs for different ecosystem participants
• Program thresholds: The fraud-related thresholds that merchants, acquirers, and issuers are required to meet
• Violation processes: How networks handle non-compliance, including remediation plans and exit criteria
• Fees and outcomes: The fee structures and consequences associated with program non-compliance
• Compliance and monitoring: The policies and requirements around fraud prevention, detection, reporting, and response

Results

The analysis delivered a structured view of the fraud risk management landscape and a clear set of recommendations for policy development.

What the client received:

• Comprehensive comparison matrix: Detailed analysis covering both Merchant & Acquirer and Issuer programs
• Program overview: Structured summary of how major networks design and operate their fraud risk management programs
• Gap identification: Clear view of where the client's programs diverged from market standards and industry expectations
• Prioritized recommendations: Actionable guidance across program structure, threshold alignment, violation processes, fee frameworks, compliance monitoring, and fraud prevention tools