BasePoint Analytic's Recovery Optimization Fights Card Fraud

The Recovery Optimization Program was developed over the course of three years by BasePoint’s fraud experts. The service provides best practices and tailored recommendations for achieving maximum results in both the chargeback and fraud challenge, the two main areas of card recovery.

The recovery services have been highly successful in pilots providing immediate payback to issuers across the globe. Mary Ann Miller, director of Risk Strategy for Lloyds TSB, advises, “At Lloyds we are focused on customer centric security. We actively seek out the most effective technology solutions and operational best practices to improve our fraud detection results. We worked with BasePoint Analytics to enhance our chargeback recovery process and achieved millions of pounds in savings so far.”

The program begins with a benchmarking process that helps to identify and size opportunities based on comparisons to issuers with best-in-class performance. Analysis of historic account and transaction level data is used to determine the appropriate target chargeback recovery rates given the issuer’s constraints and business objectives. Each issuer receives a comprehensive assessment which is completed in accordance with a review of the latest association and government regulations as well as an assessment of transactional trends, which can skew recovery performance. When the issuer is comfortable with the changes that are to take place, such as increasing challenge rates, BasePoint will assist in the implementation and measurement of the new processes.

Tim Grace, president and CEO of BasePoint Analytics stated, “We are launching this program to help issuers identify immediate savings without the necessity of implementing new software, hardware or expensive system changes. The issuers can leverage our experience in recovery optimization to save them millions of dollars this year, and they can do this with relatively straightforward process changes and new techniques.”