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The goal is not tighter fraud controls. It is the right ones.
This is the second in a two-part series on fraud. Part 1 highlights the importance of precise fraud decisioning to protect your business.
Merchants often feel the limits of their current fraud approach before they can fully describe them. Chargebacks start climbing. Changes to risk tolerance start to feel like guesswork.
Behind that friction is a familiar tension. Every merchant managing fraud is balancing two dials at once: revenue and loss. Push controls too far and good customers get blocked. Ease off too much and losses climb. The goal is to manage both with enough precision that risk decisions support better transaction outcomes, not just stricter controls.
When risk and payment challenges go unaddressed, 49% of decision-makers say they lead to poor conversion or authorization rates, and 46% say they result in lost revenue.1
Some merchants have the teams and infrastructure to manage fraud rules in depth. Others want fraud protection without having to build and run that kind of operation themselves. PayPal's fraud protection solutions are designed to support that range of needs.
Fraud Protection Advanced is ideal for merchants with dedicated fraud teams, sophisticated operations, and complex fraud requirements. It gives merchants more hands-on control over how fraud rules are set, tuned, and monitored over time.
This includes adapting to evolving review strategies and changing risk conditions. These merchants need to understand how rule changes will affect performance before they go live, then adjust decisioning to optimize outcomes.
Fraud Protection Advanced also includes ongoing data science support, giving merchants expert guidance alongside the tooling as their fraud needs evolve. Among merchants using Fraud Protection Advanced, average chargeback rates decreased by 68% and authorization rates improved on average by 6%.2
That precision shows up in practice. Kiva, an international nonprofit that crowdfunds loans to underserved communities, used Fraud Protection Advanced to move from 40 manual rules to a model-driven approach, reducing its average review rate by 200% and giving its team more control and insight into fraud decisioning.3
For merchants that need more than what basic fraud tools can provide, but do not need the full setup of an advanced enterprise solution, Fraud Protection Lite offers a right-sized path.
Fraud Protection Lite is built for self-service activation and management. Eligible merchants can get started directly in the Braintree Control Panel, with preset filters available from day one and no additional integration required. It uses machine learning to improve fraud decisioning and performance without the demands of a fully configured solution.
For merchants whose needs evolve, moving from Fraud Protection Lite to Fraud Protection Advanced does not require starting over. Transaction history and filter settings carry over without requiring reintegration.
What differentiates PayPal's fraud protection offering is the shared intelligence that supports better transaction outcomes.
Both Fraud Protection Advanced and Fraud Protection Lite are backed by PayPal's two-sided network intelligence: signals about the buyer behind the purchase and merchant-side transaction patterns across our network. That includes insights from 439 million active consumer and merchant accounts, 12.8 billion digital identifiers,4 and $1.79 trillion in annual payment volume.5 Together, that scale and visibility help optimize fraud decisions, transaction outcomes, and long-term customer value.
With PayPal, merchants get to choose the level of configurability, internal effort, and control that best fits how they work today.
For merchants managing payment volume across multiple processors, PayPal's fraud intelligence is also evolving to protect transactions regardless of where it is processed, without requiring a rebuild of existing infrastructure.
The right fraud setup gives merchants enough control to manage approvals, minimize losses, and support growth across different stages of the business and the transaction lifecycle.
For merchants with sophisticated risk operations and complex control requirements, Fraud Protection Advanced offers the configurability and support to manage fraud on their own terms. For merchants that need precision and automation without the same level of operational complexity, Fraud Protection Lite offers a right-sized path to improved fraud decisioning.
Explore PayPal’s fraud protection solutions or connect with your PayPal Account Manager. For technical implementation details, review the developer documentation.