# Fraud at Pre-Auth Unlocks Payment Optimization

## Authentication Model

## Routing Decision

## Decline

## Approve

## High Risk

### Pre-Auth

## Fraud Decision

### Card Vaulting

- **No 3DS**
- **Token**
- **Decision**
- **Card Network Decision**
- **Processor Decision**

## Merchant

- **Enhanced Authorization**
- **Major Card Network**
- **Processor A**
- **Network Token**
- **Frictionless 3DS**
- **Debit**
- **Processor B**
- **Card Number**

- **Frictionless or Challenge 3DS**
- **Domestic Network**
- **Processor C**

## Pre-authorization helps merchants drive more approvals and reduce fraud before a transaction even reaches the bank. Pre-auth merchants:

- Send clean, context rich traffic to issuing banks
- Lower processing costs
- Eliminate card testing
- Leverage 3DS authentication to approve more transactions

\*Pre-Auth becomes even more critical as VAMP introduces fees for merchants exceeding card testing and fraud dispute thresholds

## Architecting a High-Impact Payments Strategy

- **Customer**

- **Merchant**

- **Acquiring Bank**

- **Card Network**

- **Issuing Bank**

## Payments Optimization Engine

The critical points where approvals and conversion can be directly influenced. Instead, shifting fraud decisions to pre-authorization, merchants can influence key conversion levers like card vaulting, issuer strategy, 3DS, and routing, to drive increased conversions and reduce costs.