By sending billing address signals along with payment information to Radar, what is the estimated fraud model improvement?

Sending billing address signals along with payment information to Stripe Radar enhances the accuracy of fraud detection models. This practice allows Radar to incorporate additional contextual data about transactions, which can significantly improve its ability to assess the legitimacy of payments. The improvement in fraud detection models is associated with a better understanding of transaction patterns and risk levels based on customer billing addresses.

The estimated fraud model improvement of 11% reflects the effectiveness of integrating such signals into fraud detection algorithms. This change can lead to more accurate risk assessments, resulting in fewer false positives and negatives, which means legitimate transactions are less likely to be wrongly flagged as fraudulent and vice versa.

In contrast, other percentages might present an overestimation of the specific benefits of adding billing address information, as the improvement attributed to this data integration has been specifically documented around the 11% mark in Stripe's findings. This suggests that while improvements can vary with different factors, the integration of billing address signals shows a significant yet moderate enhancement in this context.