Philippine retailers risk losing legitimate purchases during the holiday shopping rush if fraud detection systems mistake promotional surges for suspicious transactions, Southeast Asian payment solutions provider Fiuu warned.
Ahead of the 11.11 and 12.12 sales and Christmas shopping campaigns, the company urged merchants to review their payment security settings to account for shifts in customer behavior during high-volume promotions.
First-time purchases, repeated payment attempts and sudden spikes in transaction frequency are common during major sales events, potentially triggering security alerts even when transactions are legitimate.
“Security should protect genuine customers, not become an obstacle for them,” Fiuu chief executive officer Eng Sheng Guan said.
“During major promotional campaigns, payment decisions should be informed by transaction context so that legitimate purchases continue to move smoothly while activity that warrants closer scrutiny can be identified.”
The distinction is important for retailers competing on discounts, vouchers and limited-time offers, where a failed checkout can mean a lost sale and a customer who may not return.
Fiuu noted that failed payments do not automatically indicate fraud. Transactions can be declined because of insufficient funds, authentication issues, decisions by issuing banks or temporary network disruptions.
Repeated failures involving different payment credentials, however, may warrant closer scrutiny as they could indicate card testing or unauthorized attempts to use payment details.
The company advised merchants to review authentication settings before major campaigns and monitor recurring declines, unusual transaction patterns and customer complaints during and after promotional events.
“A transaction pattern that appears unusual on a normal day may be entirely expected during a large promotional campaign,” Eng said.
For retailers, the challenge is to strike a balance between preventing fraudulent transactions and avoiding excessive security checks that frustrate legitimate buyers.
Fiuu said merchants should use payment data and transaction context to distinguish genuine shopping activity from potential threats, particularly when transaction volumes rise sharply during the holiday season.
