Transaction Select is our value added service that provides clients the ability to set, by campaign, risk acceptance thresholds for customers and BINs. By blocking customers (pre-authorization and before CPA) that have a risk accepted probability of refund, chargeback, or in-trial cancel, the feature increases Average Cycles and overall CLTV.
The feature allows you to build multiple Transaction Select profiles and assign them at the campaign level, giving you the ability to select the risk tolerance – low, high, or anywhere in between – for each campaign.
Managed vs Un-Managed
Transaction Select is available in two forms – Managed and Un-Managed. The Managed version leverages Lime Light’s proprietary algorithm to block undesirable customers in the most efficient and effective manner. This algorithm has been designed and trained by our Data Scientist team to maximize the protection of your business and limit possible negative effects to conversions. With the Managed version, you simply turn the feature on, assign campaigns, and our blackbox algorithm does all the hard work.
The Un-Managed version allows you to customize the feature’s six thresholds however you feel is best for your business. If you choose to use the Un-Managed version we recommend that you assess the effect of your setting in Test Mode before switching to Live mode.
In Analytics, users will see detailed reporting displaying the benefits of Transaction Select. The Transaction Select Dashboard shows many details regarding the benefits of the feature including the number of customers blocked, the financial benefit of blocking those customers, and the CLTV and Rebill / Recurring Rate benefits to your overall business.
Specifically, it will display the economics of the Control Group (see below for details on the Control Group), the benefits of using the Transaction Select Un-Managed feature (if you are using Un-Managed), and the benefits of using the Transaction Select Managed feature. Additionally, reporting will clearly indicate the results/impact of Test Configurations so users can tune their settings before taking Profiles live.
The Control Group is a group of customers NOT blocked by the Transaction Select feature; there is always a Control Group and its percent of total customers is set by LimeLight; customers that fall into the Control Group are randomly selected. Once a customer is selected for the Control group, they will remain in the control group for any future transactions. There are many reasons for the Control Group and it runs for both the Managed and the Un-Managed service. If you would like more information about the Control Group please contact Client Support and we will provide you more details.
Using Multiple Risk Mitigation Providers
It is important to note, Transaction Select does not replace Anti-Fraud risk mitigation tools such as Kount. Where Kount (or other anti-fraud tools) works to block fraudulent transactions, Transaction Select works to block customers with a set probability of performing actions that work against the economics of your business; such as: refunding, charging back, cancelling within trial, etc. As such, we have provided clients the ability to use multiple Risk Mitigation providers on campaigns as they see appropriate.
If you do choose to use multiple Risk Mitigation providers. Transaction Select has been purposely designed to add extremely little time to the execution process, specifically it will return a decision in 250 to 400 milliseconds; a similar full-turn time as Kount. If a user attempts to use more than three (3) Risk Mitigation providers on single Campaign, the LimeLight Platform will warn you of the risk of increasing transaction times beyond our recommendation. You can add as many providers as you feel appropriate, but we do recommend you do so with full understanding of the increased execution processing time and its potential effect on your specific business. If you have questions about the potential addition of execution time for a specific provider please contact Client Support and they will assist you in understanding the impact (and potential benefits) of your desired settings.
Additionally, the LimeLight Platform will not allow you to add the same provider to a single campaign twice – you will be warned via a popup message and the platform will prevent the action.
Configuring Transaction Select
To configure Transaction Select, in the Menu go to Payment Systems> Risk Mitigation Providers. From the 'Actions' drop-down menu select "Add Risk Mitigation Provider" and choose Transaction Select from the drop-down menu. The following default profile will be displayed for you to set the feature’s thresholds – the default profile has all Thresholds de-activated and set to their minimum setting.
NOTE: If using the Manual version of Transaction Select, your profile will look similar to the illustration below. The bottom will show you a summary of your Customer and BIN threshold settings.
NOTE: If using the Managed version of Transaction Select, your profile will look similar to the illustration below.
Objectives: The only objective currently available is Increase CLTC (Customer Lifetime Value).
Low: The low setting blocks customers, thereby keeping the exposure to risky customers as low as possible, as a cost of the greatest impact on conversion rates. This profile should be applied for those who are not getting enough blocks on the higher risk tolerances, or for those who can afford a large impact to conversion and wish to minimize their exposure to poor quality customers.
Medium: The medium setting optimizes the total financial benefit with a cautious conversion impact by blocking the costliest customers, while keeping the total number of blocks relatively low. This is the setting for those that want to maximize profits and can afford a moderate impact to conversion.
High: The high setting will still let through some risky customers but will have the least impact on conversion rates. This will also generate the smallest financial benefit of the three tolerance levels because it blocks the fewest customers.
Test Mode: If set to YES, orders will not be blocked by Transaction Select, but an order history note will be added to an approved order signifying that the customer would have been blocked if Test Mode was NO. Additionally, if Test Mode is set to YES, Transaction Select Reporting in Analytics will provide the same analysis as it would if Test Mode were set to NO and actual blocking were taking place – allowing you to clearly see the results of your Profile.
If Test Mode is set to NO, the Transaction Select will block customers based on the profile setting. IMPORTANT: We recommend Testing any Profile configuration before turning it to NO and allowing live blocking of customers. See the Reporting section for more information on Test Mode Reporting.
Alias: This is where you give your custom profile a name.
Thresholds Types: There are two threshold types, Customer Thresholds and BIN Thresholds. For both sections, you have the ability to set how the activated thresholds within that Type act – individually (ANY) or together as a group (ALL). If ANY is chosen, then any single activated threshold in that Type will cause that customer to be blocked. If ALL is chosen, then all activated thresholds must be met for that customer to be blocked.
Thresholds: Within both the Customer and the BIN types there are (3) three thresholds, each with their own slider: Chargebacks, Refunds, and Trial Cancelation (cancellation of the subscription within the specific Trial period)
AND/OR Selector: Between the Customer and BIN Sections, you will be able to select AND/OR to set if the two Threshold Types work individually or together. If the AND/OR selector is set to AND then the Customer criteria must be met AND the BIN criteria must be met for a customer to be blocked. If the AND/OR selector is set to OR then either set of criteria can be met for a customer to be blocked.
The Toggle Switch to the left of each Threshold allows you to activate the Threshold or de-activate that individual Threshold. You can activate/de-activate any combination of Thresholds you wish.
How the Thresholds Work
The Customer Threshold displays a range between 1 to 10 and indicates a numeric count acceptance level. As you increase the Customer Threshold, you are increasing the number of the specific events the customer has performed historically that you are willing to accept – you are increasing your risk tolerance. Also, the set-point should be read as “less than or equal to the set number”.
As an example, if you were to set the Customer “chargeback” threshold to 5 then you are indicating that you are willing to accept a customer with 5 or less fewer chargebacks. If you increase the threshold, to say 7, then you are increasing your risk tolerance and indicating that you are willing to accept a customer with 7 or less chargebacks.
The BIN Threshold displays a range of 1 to 100 and indicates a percent (%) of total orders on that BIN. As you increase the BIN Thresholds, you are indicating that you are willing to accept customers from a BIN with a higher percent of total transactions being of the slider type – you are increasing your risk tolerance. Also, the set-point should be read as “less than or equal to the set percent”.
As an example, if you were to set the BIN “chargeback” threshold to 50 (aka 50%), you are indicating that you are willing to accept customers from a BIN with 50% or less of total transactions resulting in a chargeback. If you moved the slider to the right, to say 70 (aka 70%), then you are increasing your risk tolerance and indicating that you are willing to accept a customer from a BIN with 70% or less of total transactions resulting in a chargeback.
As a rule, BINs with less than 100 transactions will not be included in Transaction Select BIN blocking as there is too little data to statistically predict the risk profile of that BIN.
The Calculate BINs will allow you to see how many BINs your thresholds will block before you save the profile. Once you set the BIN thresholds, click on "Calculate BINs" and it will calculate the total number of BINs that would be blocked based on your threshold settings.
The BINs Blocked will be the potential number of BINs blocked. The Total BINs are the total number of BINs in our database with 100 or more transactions.
Assign Transaction Select to Campaigns
To assign Transaction Select to campaigns, go to Risk Mitigation Provider profiles located under Payment Systems > Risk Mitigation providers. To the right of the profile under features click on the ‘plug’ symbol and you will be presented with a pop-up displaying a list of your campaign(s). You can then select a single campaign or multiple campaigns (Mac: Command+Click: PC: Ctrl+Click) to assign the Transaction Select profile to. You have the option to either select the campaigns from the list, or upload a CSV list of campaign ID’s.
Transaction Select can also be assigned to a single campaign within Edit Campaign. Edit Campaign is located under Campaigns > Manage Campaigns, to the right of the campaign you want to edit, select the ‘pencil’ icon. On the Edit Campaign screen, under Options, select ‘Third Party Providers’ and you will be presented with a list of your configured Risk Mitigation providers. (Note: Transaction Select will only be listed as an available Risk Mitigation provider if you have configured and enabled a profile – to do so see above in Configuring Transaction Select)
You can select one or multiple profiles (Mac: Command+Click: PC: Ctrl+Click), but you can only select one profile per Risk Mitigation provider per Campaign. (See Using Multiple Risk Mitigation Providers above)
The whitelist will allow you to configure internal email addresses you wish to bypass Transaction Select for testing purposes, this will to allow trusted emails to never be blocked by Transaction Select.
Note: this is not to configure a customer email you think is safe, but rather bypass any internal emails you never want to have blocked.
Whitelist Email Addresses
To assign Transaction Select to campaigns, go to Risk Mitigation Provider profiles located under Payment Systems > Risk Mitigation providers. To the right of the profile under features click on the ‘flag’ icon and you will be presented with a pop-up to add emails. You will need to enter the email address as illustrated below and click on the (+) to add it to your list. To delete an email from the whitelist simply select the email from the list and select the delete icon. You also have the option to upload a CSV file of whitelisted emails.