Marketplace Struggles with Fraud Detection Balance in Cross-Border Payment Processing

A payment manager for a marketplace handling approximately 200,000 cross-border transactions monthly is seeking advice on fraud detection strategies. Their current system relies on their payment service provider's native risk engine combined with custom velocity rules developed internally. However, they are facing significant challenges with rising chargeback rates while simultaneously experiencing false positives that block legitimate customers. The issue is particularly acute with overly aggressive rules that target non-domestic bank identification numbers (BINs), resulting in legitimate international customers being incorrectly flagged and blocked from completing transactions.