Payment Optimization
Maintain PSD2 Compliance.
Maximize Conversions.
Reduce 3DS redirection, monitor customer payments and order activity. Minimize friction and increase conversion rates.
Risk Scoring
via Customer 360
Reduce 3DS redirection and payment optimization by giving a risk score at the first onboarding stage. Verify specific information such as email, phone number, physical address, IP address, with Mastercard enrichment and social media scanning.
PSD2 Optimization
by Frictionless 3DS Authorization
Reduce friction, and increase revenue by analyzing customers’ historical transaction patterns. Determine whether customers should be directed to 3DS. Ensure the balance between security and user experience.
PSD2 Performance Overview
with Insightful Dashboards
Assess the performance of your rules, analyze the efficiency of your PSD2 performances on the platform, and gain insights. Have the ability to modify the monitoring criteria in accordance with a unique risk profile, make efficient supervisions.
Frequently Asked Questions
Payment optimization is the process of improving payment flows to maximize approval rates, reduce unnecessary friction, and enhance customer experience. It helps businesses increase conversions while maintaining strong fraud prevention and regulatory compliance. Modern payment optimization strategies focus on balancing security (PSD2 compliance) with seamless checkout experiences.
PSD2 optimization enables businesses to balance security and user experience by applying risk-based authentication. By using frictionless 3D Secure authorization when appropriate, organizations can reduce customer drop-off, minimize unnecessary challenges, and increase payment approval rates.
Frictionless 3DS is a payment authentication process that allows low-risk transactions to be approved without requiring customers to complete additional verification steps. It works by analyzing historical transaction data, behavioral signals, and risk indicators to decide whether authentication is necessary, ensuring both security and smooth checkout flow.
Customer risk scoring evaluates data points such as email addresses, phone numbers, physical addresses, IP addresses, and behavioral patterns to determine transaction risk. This enables more accurate authentication decisions, reduces unnecessary 3DS redirections, and helps prevent fraudulent transactions while improving conversion rates.
AI-driven payment optimization systems analyze customer behavior and transaction history to make real-time authentication decisions. By combining machine learning with risk-based rules, businesses can reduce false declines, optimize 3DS usage, and increase overall payment approval rates.
Formica AI enables this type of AI-driven payment optimization by combining fraud intelligence, PSD2 compliance logic, and behavioral risk analysis into a unified system.