How it Works

PaxGuard™ evaluates the fraud risk of each customer order based on rules you can customize, as well as the information contained in the PaxGuard Intelligence Network. It then delivers a recommendation to your e-commerce order flow. Customers, whose orders are deemed high risk, can be given the option of using a secure, non-reversible alternate payment method. Legitimate customers can choose to employ these alternatives. Fraud perpetrators will leave on their own.

Order Flow

Once your e-commerce system has collected billing and shipping information from your customer, and before it sends the information to the payment processor, it will send it to PaxGuard for evaluation. This PaxGuard transaction is fast, it is transparent to your customer, and it accepts encrypted values for any sensitive data.

PaxGuard will gather information from multiple sources and use that information along with your customized fraud rules to determine whether or not to send the order to your payment processor.

PaxGuard will send an accept/reject recommendation back to your site. If PaxGuard recommends rejecting the payment, the response will contain error codes indicating why it should be rejected as well as a link to low-risk payment methods your customer can use as an alternative to pay for their order. If PaxGuard recommends accepting the payment, your site will process the payment normally. If the payment is fraudulent or is reversed, you can provide PaxGuard with evidence to that fact, and PaxGuard will give you a $1 USD credit (over twenty times the cost of the transaction) on your monthly invoice.

PaxGuard™ Integration

PaxGuard uses a simple name-value pair over HTTPS protocol. Here is an example of an HTML form post to PaxGuard:

<form action=”https://www.paxguard.com/evaluationHandler” method=”post”>

   <input type=”hidden” name=” txnId” value=”10515016510”>

   <input type=”hidden” name=” pgAccountName” value=”VideoGame”>

   <input type=”hidden” name=” pgKeyString” value=”102b9a2f3b34429aebc223”>

   <input type=”hidden” name=”version” value=”1.0”>

   <input type=”hidden” name=”payerId” value=”43b5f23240ca7b83144f50”>

   <input type=”hidden” name=”payerStatus” value=”verified”>

   <input type=”hidden” name=”payerIpAddress” value=”255.0.0.1”>

   <input type=”hidden” name=”payerCountryCode” value=”US”>

   <input type=”hidden” name=”payeeId” value=”games@videogame.com”>

</form>

The HTTPS response body contains the info on the result of the PaxGuard rule evaluation expressed in plain text as (UTF-8, URL-encoded) key-value pairs using the standard URL request parameter key-value pair format (i.e., =&=…). Here is an example response:

txnId=1&version=1&testMode=n&resCode=100resReason=&accept=y

PaxGuard™ Administration

The PaxGuard Administration site allows merchants to manage every facet of the fraud prevention service. The merchant site has three main concepts:

Rules

Rules have configurable values that can be defaulted for a quick setup and can be changed in real time to allow you the ability to make slight changes over time or quickly respond to changes in customer behavior.

Rule sets

Rules are contained in rule sets. All evaluation occurs on these sets. You can create as many sets as you require based on different rule settings needed. Different payment methods, such as credit cards and PayPal™, require different rule sets, however you can have multiple rule sets for a single payment method.

Support tools

Support tools will allow you to view PaxGuard transaction history for your account or transactions specific to individual customers. You will be able to see all evaluations and updates processed as well as accept/deny reasons. You can use these tools to help configure your rule sets.