{"url":"https://www.clear.sale/blog/the-thin-line-on-using-blacklists","title":"\"Blacklists\" as Fraud Protection: Are Merchants Walking a Thin Line?","tldr":"Of all the problems businesses face in the marketplace, fraud is one of the more complex. Although it may appear simple, it involves factors that are far harder to address than one might imagine.","markdown":"Of all the problems businesses face in the marketplace, fraud is one of the more challenging, involving complex factors that are often difficult to address.\n\nSo when it comes to finding an effective way of preventing fraud, some merchants might think \"[blacklists\"](/blog/the-risks-and-issues-associated-with-chargeback-blacklists-and-whitelists) are a cost-effective, efficient strategy. Unfortunately, they don't always provide the results e-commerce merchants expect -- or need.\n\nLet's look at what \"blacklists\" do, and how they might let merchants down.\n\n## What Are \"Blacklists\"?\n\nWhen a merchant falls victim to a chargeback, they may add the transaction details (like email addresses, IP addresses and credit card information) to a \"blacklist\". That means the next time a customer attempts to place an order using any of the blacklisted information, the transaction will be automatically declined.\n\n## How \"Blacklists\" Can Fail Merchants\n\nWhen a merchant realizes they must implement a fraud protection solution to protect their growing business, they look for a solution that can make quick decisions. While \"blacklists\" do just that, there are several ways that \"blacklists\" cost merchants, including:\n\n### They Reject Legitimate Transactions\n\nWhile \"blacklists\" can help prevent fraudulent transactions from being processed, they also reject legitimate transactions, like when a customer makes a large purchase while on vacation.\n\nAnd because transactions are rejected automatically -- and more frequently -- an e-commerce merchant's revenue suffers.\n\n### They Aren't Efficient for Long\n\nOnce a fraudster realizes their buying profile is being rejected because of a \"blacklist\", they'll [switch strategies](/blog/4-ways-savvy-fraudsters-outsmart-traditional-fraud-management-solutions) and try a new approach to sneaking fraudulent transaction through.\n\n### They Frustrate Customers\n\nWhen legitimate customers find themselves on \"blacklists\", they [may not be quiet](/blog/false-declines-hurting-your-online-reputation) about their frustration and they aren't likely to return to make future purchases.\n\n## Choosing a Better Fraud Protection Approach\n\nUnfortunately, merchants don't have the luxury of time when it comes to evaluating and approving transactions -- they need a solution that's fast and accurate. That's why many e-commerce retailers are turning to a hybrid fraud solution that uses a trained team of experts and automated analysis to detect even the smallest instances of fraud. It's an approach that makes all the difference in buyer experience and merchant profitability.Merchants must also look for a solution that can be customized to their industry and pain points. That solution offers merchants a broader understanding of how their business might be attacked, allowing for better protection and the increased ability to protect their legitimate customer base.If a fraud prevention solution seems too good to be true, it probably is -- and that's exactly what merchants are learning about blacklists. So when you're ready to invest in a comprehensive solution that focuses on stopping fraud, protecting against chargebacks and growing your revenue, [contact the experts at ClearSale](https://www2.clear.sale/contact). Our trusted solution offers a frictionless checkout experience and will help keep your business off fraudsters' radars."}