If you’re looking to expand into a new region or a new sales channel, your business will be faced with a lot of important decisions to make: Do you hire new people? How do you deal with increased personnel costs? What types of new risks will your business face as you grow? And how can you spend money wisely, so you get a fast return? An important determinant of success could be the decisions you make about your fraud strategy.
The challenge of expansion
Expanding your business is an exciting venture. It means breaking into new markets, attracting new customers, and potentially increasing your revenue. However, it can also involve significant financial and operational investments. You need to make sure you’re protecting your revenue while minimizing the additional investments. The goal is to see a fast return on investment, but that’s not a guarantee.
Tailor-made strategies can help
One way you can help increase revenue while protecting what you have is using effectively tailored fraud management. Cybersource operates in 160+ countries and territories1, giving us the expertise to provide guidance about local payment regulations for all channels. More importantly, we can help you access tailored fraud management scenarios to help you capture more revenue.
Meeting security regulations in new markets is crucial. But be conscious that you’re not adding friction to the checkout process; you’ll still need to provide a seamless experience for your customers. This balance between security and ease of use can significantly impact your revenue growth.
Fraud management as a revenue enabler
Fraud management is often seen as a cost center, a necessary expense to protect your business. However, when done right, it can also be a revenue enabler. By tailoring your fraud strategy to new scenarios, you can help capture as much revenue as possible.
You’ll need an understanding of the unique fraud risks in each new market or sales channel that you plan to enter as well as how to implement the appropriate preventive measures for each. Our insights into the fraud and payments environments in 160+ countries and territories1 are another way you can leverage our knowledge for your expansion.
Scaling with efficiency
Another key aspect of successful expansion is scaling your business without having to add more staff so you can control costs. This is where automation and machine learning can help. By integrating these technologies in your fraud management strategy, you can increase efficiency, reduce manual work, and ultimately control costs.
So if you're looking to increase revenue while you expand, you need to have the right tools and the right strategy for managing fraud in new scenarios. By tailoring your strategy to new locations and channels with efficiency, you can make the most of your expansion efforts and see a fast return on investment. Expansion is not just about growing bigger; it's about growing smarter. And smart growth starts with effective fraud management.
1 As of April 2023.
Disclaimer: These materials and best practice recommendations are provided for informational purposes only. Visa is not responsible for your use of these materials, recommendations or other information, including errors of any kind contained in this document.