85% of Merchants Say Fraud Tools Must Reduce Checkout Friction

Merchants fighting fraud increasingly face a strategic challenge that extends beyond blocking criminals. The real task is protecting revenue while keeping checkout smooth for legitimate customers. A new PYMNTS Intelligence report suggests the industry is beginning to solve that problem by orchestrating fraud defenses across the entire payment journey rather than relying on isolated tools.

The report, “Orchestrating Trust: The Future of Fraud Prevention in Payments,” argues that fraud management is entering a new phase. Digital commerce has created a complex network of payment gateways, identity tools and security systems. When these tools operate independently, merchants risk higher false declines, added friction and lost sales. Fraud orchestration platforms aim to unify those signals into a single decision layer, helping organizations respond to threats faster while improving the customer experience.

The research finds that the next generation of fraud prevention focuses less on a single detection tool and more on coordination. Modern fraud defenses combine behavioral data, device intelligence, machine learning models and payment routing into an integrated workflow that can assess risk in milliseconds. The goal is to protect transactions while keeping legitimate purchases moving through checkout.

Key Findings From the Report:

85% of merchants say reducing friction for legitimate customers is their biggest fraud-prevention challenge. Companies increasingly see customer experience as part of the fraud equation rather than a separate concern.

53% of U.S. financial institutions already use fraud orchestration or expect to adopt it soon. The technology is moving from experimentation into mainstream deployment across banks and payment providers.

51% of global eCommerce merchants expect spending on fraud-management staff to remain flat or decline. At the same time, most plan to increase investment in automated fraud technologies that can scale more efficiently.

The third finding highlights a structural shift in how organizations approach fraud management. As digital payments grow, companies are under pressure to control operating costs while responding to more sophisticated attacks. Automation is filling that gap.

Fraud orchestration platforms help companies do more with fewer resources. These systems connect application programming interfaces, third-party risk signals and internal transaction data into a unified decision engine. Instead of routing every transaction through the same checks, orchestration systems can apply stronger verification only when risk indicators justify it. That improves approval rates while reducing unnecessary friction.

The model also allows organizations to test and refine fraud strategies quickly. Businesses can experiment with different security tools, adjust rules across channels and analyze performance in real time. This flexibility has become increasingly valuable as fraud tactics evolve rapidly across digital wallets, instant payments and embedded commerce.

The report notes that fraud prevention is expanding beyond the moment of payment. Modern strategies track risk signals throughout the entire customer lifecycle. That includes onboarding, account changes, transaction monitoring and dispute management after the purchase is complete.

For merchants navigating a fast-changing payments landscape, the takeaway is clear. Fraud prevention is becoming an integrated discipline rather than a standalone function. Coordinated defenses allow businesses to protect customers, preserve revenue and keep digital commerce moving.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.