3 ms·

This is a horribly editorialised title. In my view (as a e-commerce store owner) a false positive rate detecting fraud across their whole network of only 0.1% i

This is a horribly editorialised title. In my view (as a e-commerce store owner) a false positive rate detecting fraud across their whole network of only 0.1% is very very low. If I'm reading it right, that's 1 in 1k blocked transactions are incorrect, not 1 in 1k all transactions! > The challenge is compounded by the fact that fraud is rare—on the order of 1 out of every 1,000 payments. So 0.1% of 0.1% (0.001%) of transactions are incorrectly blocked.

jacquesm 4y ago
Yes, but that sentence could have been worded much more clearly.
joebiden2 4y ago
The article says (2nd paragraph, last sentence): > Out of the billions of legitimate payments made on Stripe, Radar incorrectly blocks just 0.1%. I seem to parse this differently, to me it reads as if 1 out of 1000 transactions are incorrectly flagged. I am not a native speaker though. Could you explain how you arrive at 0.1% of blocked transactions? I just saw your edit, but my question still stands.
- jacquesm 4y ago
  The way I parse that is if a transaction is blocked the chance of it being an incorrect block is 0.1%. So out of 10000 transactions blocked 9990 would be correct blocks and 10 would be incorrect blocks. I agree it is confusing though. What is interesting is how they determine the incorrect blocks but the article doesn't really expand on that, it's just about one aspect of their fraud detection pipeline.
someweirdperson 4y ago
I'm missing some information how they count incorrectly blocked. If something fails for unexplainable reasons, as a user I simply switch to a different payment method or a different supplier.
- jacquesm 4y ago
  And as a merchant: I'd be fine with that. Because the downside for a lost sale is manageable but too high a fraud percentage and my merchant account gets killed and that would be the end of my business. So merchants and PSPs will err on the side of caution.

jacquesm 4y ago

Yes, but that sentence could have been worded much more clearly.

joebiden2 4y ago

The article says (2nd paragraph, last sentence): > Out of the billions of legitimate payments made on Stripe, Radar incorrectly blocks just 0.1%. I seem to parse this differently, to me it reads as if 1 out of 1000 transactions are incorrectly flagged. I am not a native speaker though. Could you explain how you arrive at 0.1% of blocked transactions? I just saw your edit, but my question still stands.

jacquesm 4y ago
The way I parse that is if a transaction is blocked the chance of it being an incorrect block is 0.1%. So out of 10000 transactions blocked 9990 would be correct blocks and 10 would be incorrect blocks. I agree it is confusing though. What is interesting is how they determine the incorrect blocks but the article doesn't really expand on that, it's just about one aspect of their fraud detection pipeline.

someweirdperson 4y ago

I'm missing some information how they count incorrectly blocked. If something fails for unexplainable reasons, as a user I simply switch to a different payment method or a different supplier.

jacquesm 4y ago
And as a merchant: I'd be fine with that. Because the downside for a lost sale is manageable but too high a fraud percentage and my merchant account gets killed and that would be the end of my business. So merchants and PSPs will err on the side of caution.