What should be implemented to enhance the effectiveness of review rules in fraud prevention?

Implementing separate authorization and capture is an effective strategy in enhancing the review rules for fraud prevention. By decoupling the authorization step from the capture step, businesses can first verify that a transaction is legitimate before actually processing the payment. This allows for a considerable buffer period in which additional checks can be conducted without requiring immediate financial commitment from the customer.

In cases where a transaction raises suspicion during the review, the business can choose to decline the authorization without affecting the customer's account or performing a full capture, which could lead to unnecessary complications. This approach also allows businesses to employ further fraud detection processes and potentially gather more information for evaluating the transaction's legitimacy before actually placing any charges on the customer’s account.

The other strategies may not provide the same level of fraud protection. Immediate capture of all transactions does not allow the team to assess potentially fraudulent activity before completing the transaction, thus increasing the risk of financial loss. Manual reviews of all transactions can significantly slow down the transaction processing time and might be inefficient and impractical for high-volume businesses. Requiring customer verification before the transaction can improve security but might also lead to friction during the checkout process, potentially resulting in lost sales and a poor customer experience. Therefore, the separation of authorization and capture stands out as a balanced