Fraud prevention software is essential for high-risk merchants, but pricing isn’t always clear.
While costs start at $700/month for basic plans and increase for enterprise solutions, many merchants struggle to understand what they’re paying for and how costs will grow with their business.
This guide will break down fraud prevention pricing, highlight what’s fair to pay, and explain how to avoid hidden fees like transaction charges and setup costs.
How Much Do Fraud Detection Tools Cost?
Fraud prevention cost for high-risk merchants, such as those in gambling, CBD, or cryptocurrency, varies based on risk exposure and transaction volume.
Entry-level solutions like Kount Essentials start at $0.07 per transaction, ideal for businesses processing fewer than 10,000 monthly transactions.
Mid-tier plans, such as Kount Advanced, begin at $1,000/month and include unlimited fraud checks, custom rules, and integration support. Enterprise-grade tools with custom pricing cater to large-scale operations requiring advanced features like chargeback guarantees or identity verification.
Why High-Risk Businesses Pay More for Fraud Detection Software?
High-risk businesses often see a higher fraud prevention software price due to the increased complexity of their transactions and higher fraud risks. For example, industries like CBD, gambling, and subscription services typically face more chargebacks and sophisticated fraud tactics, leading to higher costs.
Types of Fraud Prevention Pricing Models
Subscription-Based Fraud Prevention (Monthly/Annual Fees)
This model is common for businesses seeking consistent and predictable fraud protection costs. For example, SEON’s Starter plan costs $699 per month, which includes API integration, 500 manual fraud checks, and 1,000 API calls.
Pay-Per-Transaction Fraud Detection Fees
Some providers offer pay-per-transaction pricing, where you pay based on the number of transactions processed. For example, AWS charges per fraud prediction.
The rates for fraud predictions range from $0.0300 per prediction for the first 100,000 per month to as low as $0.00125 for higher volumes.
This model can be more cost-effective for businesses with fluctuating transaction volumes but may lead to higher costs for high-volume businesses.
Custom Enterprise Pricing for Large Merchants
For larger businesses, custom enterprise pricing is often required.
These plans are tailored to the unique needs of your business, including the number of transactions, the complexity of your fraud risks, and the level of integration required.
Kount’s Advanced plan starts at $1,000 per month, and larger enterprise solutions often involve specialized features and support, resulting in custom pricing that can exceed $5,000 per month for the most complex needs.
How to Score a Good Deal
Essential Features vs. Budget Constraints
Prioritize tools that address high-risk vulnerabilities.
For example, Kount Advanced includes pre-auth payment risk analysis, reducing chargebacks by blocking fraudulent transactions before processing.
Machine learning, while adding 20–30% to costs, can cut fraud losses by 40%. Avoid overspending on non-essentials like custom dashboards if core features meet your needs.
Hidden Fees and How to Avoid Them
Many vendors charge setup fees, API integration costs, or compliance add-ons.
Kount’s Enterprise plan, for instance, includes advanced onboarding support at no extra cost, while others charge for these services. Always ask for a full fee breakdown and negotiate waivers for long-term contracts.
Evaluating Long-Term ROI
A fair deal reduces chargebacks and boosts approval rates. For example, FastoSafe helps businesses reduce fraud and chargebacks by 70% in 60 days.
Look for tiered pricing that rewards scale such as AWS drops prediction fees to $0.0075 after 100k transactions and free trials (like SEON’s 30-day trial) to test ROI potential.
Key Features to Look for in a Fraud Prevention Software
You can check out our detailed article on the top 5 features to look for in a fraud prevention solution.
3D Secure
3D Secure 2 (3DS2) shifts chargeback liability to the banks for transactions that are authenticated. Opt for software that integrates this protocol seamlessly like FastoSafe, applying step-up authentication only when necessary for high-risk transactions. This ensures a smooth checkout process while protecting your revenue.
Real-time Screening
Fraud can occur in an instant, so your software must analyze transactions in real time. It should flag potential issues like mismatched billing addresses, large or unusual purchases, or devices associated with previous fraudulent activity.
The best solutions like FastoSafe go beyond simply identifying suspicious patterns, they do so without causing noticeable delays in the checkout process.
Chargeback Alerts and Dispute Automation
Effective fraud prevention software should provide real-time chargeback alerts and tools for managing disputes. These features enable swift responses to chargebacks, allowing you to gather evidence and contest illegitimate claims.
Additionally, some tools offer insights into chargeback trends, which help you identify recurring fraud patterns and adjust your strategies. With high chargeback rates leading to penalties or account termination, managing chargebacks efficiently is crucial to maintaining a healthy merchant account.
KYC and Identity Verification
For high-risk industries, robust identity verification is essential. Look for solutions that go beyond basic card checks, offering features like biometric scans, document verification, and liveness detection to ensure customers are who they say they are.
Subscription businesses, in particular, should prioritize thorough verification, including email and phone validation, to reduce free trial abuse and prevent account takeovers. These measures add layers of security without creating friction for legitimate users, protecting your revenue streams.
Get a Free Assesment from FastoSafe Before you Decide
FastoSafe offers all of these tools out of the box, making it the most complete fraud prevention software on the market. Get your free assessment today.
