Corgi Labs' Key Terms

3DS: Additional verification step by customers, regulated by Strong Customer Authentication in certain regions.
Authentication: Verifying the identity of the cardholder or shopper. If required by the issuer, the shopper must prove that they are initiating the transaction. Authentication occurs before authorization.
Authentication Rate: The ratio of passed authentications to authentication requests.
Approval Rate: The ratio of approved transactions to initiated transactions.
Approved Revenue: Authorized transactions of GMV
Authorization: Determining if the cardholder or shopper has sufficient funds, checking for fraud, etc. Authorization involves verifying payment details. The issuer checks if the shopper has a valid card and enough balance to cover the transaction. Authorization occurs after authentication.
Authorized: A transaction approved by the financial institution.
Authorized Rate: The authorization rate indicates your performance in terms of successful (and failed) payment authorizations. It is calculated by dividing the number of authorized transactions by the number of received transactions.
Block Rate: The ratio of blocked payments to attempted payments.
Chargebacks: Reversing the transaction and returning funds to the cardholder when a dispute is accepted.
Disputes: Cardholder questions your payment with their card issuer.
Drop-off: Occurs when transactions do not reach the received for authorization stage.
Failed Authentication: The shopper’s authentication was initiated but ended up being unsuccessful.
False Negatives: Fraudulent transactions mistakenly considered non-fraudulent and passing through the payment gateway.
Fraudulent Dispute Rate: The ratio of disputed transactions for fraud to successful payments.
Initiated Transaction: A transaction started by the merchant or the shopper.
Precision: The true positive rate - the proportion of positive identifications that were actually fraudulent.
Recall: The proportion of fraudulent transactions that were correctly identified.
Refunds: Merchant returns funds to the customer directly.
Successful Authentication: The shopper’s authentication was completed successfully.
True Positives: Transactions flagged and blocked as fraudulent when they are indeed fraudulent.
True Negatives: Non-fraudulent transactions successfully going through the payment gateway.

Corgi Labs’ Rule Summary

Condition: A logical statement or expression that evaluates to true or false based on the characteristics or properties of the data.
F1 Score: A measure of the balance between precision and recall.
Rule: A rule is a statement or directive that prescribes actions or decisions based on predefined conditions.
Samples: A subset of data taken from a population for analysis. Number = x samples effective on specific rule.

Corgi Labs’ Fraud Clusters

Low: Refers to transactions or events with a dispute rate below 0.6%. These are instances where the percentage of disputes relative to the total number of transactions or events is minimal.
Medium: Represents transactions or events with a dispute rate ranging from 0.6% to 1%. These occurrences have a moderate level of disputes compared to the total volume, falling within a defined range.
High: Denotes transactions or events with a dispute rate exceeding 1%. These instances experience a significant proportion of disputes relative to the total volume, indicating a heightened level of concern or risk.