dLocal, a tech-first payments platform that enables enterprise merchants to connect with consumers in emerging markets, has introduced its latest developments for risk management.
The first product in the stack is Smart Defense, which is described as an advanced, custom-built solution that combats fraud by leveraging enhanced data and machine learning models.
The program is designed to improve its prediction capability by “inspecting a high volume of transactions, not only by blocking suspicious payments but also by approving more genuine purchases.”
Nicolas Aliberti, VP of Fraud Prevention at dLocal, stated:
“The more attacks it stops, the smarter it gets. SmartDefense quickly goes through a massive number of data points such as shopper information, shipping address, item purchased, industry, and device ID, among others, to assess risk and define scoring rules for future transactions.”
Merchants are able to subscribe to Smart Defense as a standalone feature “even when processing their payments through a different PSP,” the announcement noted.
Aliberti also mentioned:
“No other payment facilitator has such a large database of online transactions in emerging countries, where fraud is a critical challenge. Even with another provider, it is a wise option to let dLocal handle your risk management in those markets.”
dLocal also presents Defense Manager, a user interface that provides merchants the flexibility to change “a predefined set of rules.”
Aliberti further noted:
“Choose the tolerance according to your risk appetite. Decide, for example, which transactions should apply 3D Secure and when to be less conservative in a user-friendly dashboard. This tool puts your fraud team in charge of decision-making and is ideal for companies that already have industry-specific fraud intel and dedicated teams.”
Finally, with Chargeback Guarantee, merchants are able to delegate fraud management responsibilities and costs to dLocal.
For a transparent fee based on the volume of approved transactions, online firms without a dedicated fraud management team can “leave it to dLocal to configure specific rules and cover all chargeback costs,” the update explained.
Aliberti continued:
“As with all our products, we want to make fighting fraud a simple process, even with complex matters such as chargebacks and disputes. Chargeback Guarantee will keep conversion rates high and eliminate the risk of penalties from card schemes. All the merchant needs to worry about is growing their business.”
dLocal’s fraud prevention tech, powered by AI, with machine learning algorithms like XGBoost and deep neural networks “checks in real-time and under 100 milliseconds for potentially fraudulent transactions.”
As explained in the update, each merchant and industry have “tailor-made machine learning models that are retrained almost on a daily basis with petabytes of information on millions of transactions from emerging markets.” That enables merchants to “grow their business, stop fraud and create more revenue from legitimate transactions,” the announcement noted while adding that dLocal’s reach and experience make these “the most sophisticated fraud prevention systems for emerging markets.”