Rules: Strengths & Weaknesses
Rules (e.g. "decline if 5+ orders from same IP in 1 hour") are deterministic, explainable, and instantly tunable. They're also brittle — fraudsters adapt in days.
ML: Strengths & Weaknesses
Models capture interactions humans miss and adapt as fraud patterns shift. They require training data, monitoring, and explainability tooling.
The Right Architecture
Payomatix
Hybrid engine, sub-50ms scoring, fully tunable rules layer, and explainability for every decision.