Decision Manager implementation
Helping Myer reduce fraud without compromising the customer experience
Myer is one of the most iconic department store chains in Australia, with 57 stores across the country, as well as a burgeoning online business. We have been working as their trusted fraud management partner, helping them to reduce online fraud, and stay ahead of emerging threats.
The challenge: fighting fraud without frightening customers
Prior to 2018, Myer’s online business was supported by legacy fraud management systems that were not sufficiently scalable. The fraud team were having to manually review ~10% of online transactions—investing 330 hours a week in the process. The need for a more modern approach to fraud prevention was required to decrease fraud, improve operational efficiency, and decrease the danger of exceeding the fraud thresholds of Visa and local regulators.
What we did: partnering up on a future-proof plan
Over the past five years, we have worked closely with Myer—step-by-step developing a truly best-in-class fraud management process delivered at speed.
Working closely with Myer, we implemented our Decision Manager risk management tool alongside a tailored fraud strategy to screen transactions and split them into different risk categories.
Machine learning optimisation
Applying Decision Manager’s advanced machine learning models to historical transaction data, we can spot unique patterns and automate risk strategies.
Commitment and collaboration
Decision Manager is a technology solution, but it would not have been nearly as successful without the commitment of Myer’s Loss Prevention team, and their partnership with our Cybersource Managed Risk Analysts.
Bringing DMPA into play
Decision Manager Payer Authentication (DMPA) was introduced to replace Myer’s existing manual review strategy by routing high risk transactions, post Decision Manager scoring, to 3-D Secure (3DS) for fraud liability protection.
A positive experience for customers
Less friction, no fraudulent transactions on their cards and genuine payments being accepted seamlessly all adds up to a far more positive experience for Myer customers.
98.7%
Authorisation rates
As of July 2021, Myer had enjoyed a 15% YOY increase in online revenue, supported by the adoption of our tool, and simultaneously increased authorisation rates from 94% to 98.7%.1
7k
Labour hours saved
Since implementing 3DS, Myer’s manual review rate has gone from 3.5% to almost zero, saving an estimated 7,000 labour hours compared to the previous year2—freeing up team members to focus on other key areas of loss prevention, and reducing operational costs.
89%
Chargeback reduction
In the first year of implementation of Decision Manager, Myer’s online sales increased by 25% but the chargeback rate did not fluctuate. In the second year, chargeback rate reduced by 89%, despite a further 15% increase in online revenue.2
1 Based on Myer’s data from Financial Year 2021, August 2020–July 2021
2 Based on Myer’s data from Financial Year 2022, August 2021–July 2022
Disclaimer note
The statistics in this section are made available by Myer. Visa does not make any representation or warranty about its completeness or accuracy and is not responsible for your use of or reliance upon the information contained herein, including errors or inaccuracies of any kind.
“As is” disclosure
Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Cybersource neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
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