Visa and Ethoca team up to help eComm merchants reduce fraud

Visa

Helping fight eCommerce fraud

Visa and Ethoca are working together on a service that will notify eCommerce merchants of fraudulent transactions, allowing them to quickly stop the fulfillment process. The service is intended to help merchants reduce fraud losses and associated chargeback costs. The Visa-enhanced service is currently available to U.S. and Brazil merchants through Ethoca and also through CyberSource, a leading global payment management company and wholly-owned subsidiary of Visa Inc.  

Using near real-time information from Visa on confirmed fraud transactions, Ethoca is able to send secure alerts to the affected merchants in the critical 24-72 hour window between when eCommerce orders are placed and when they are fulfilled or shipped, a significant reduction in time from the current average of three to six weeks it takes for merchants to be notified.

The offering compares transactions from Ethoca’s merchant customer base against fraud data sent by Visa and participating issuers. In the event a purchase is confirmed as fraudulent, Ethoca’s platform immediately notifies the merchant through its alerts dashboard. This early warning gives merchants more time to stop the fulfilment process, limiting fraud losses. An analysis of past transactions suggests Ethoca Alerts enhanced by Visa data could help prevent USD300 millionin fraud annually. 

U.S. online retail sales are predicted to reach USD370 bn by 2017, up from USD231bn in 2012, according to Forrester Research. Maintaining strong fraud prevention defences will be important if merchants are going to make the most out of the opportunity ahead.

“The biggest differentiator in our service is that we provide merchants with timely access to information not previously available,” said Andre Edelbrock, Ethoca CEO. 

Ethoca’s proven platform catches up to 73 percent of transactions authorized by issuers that are subsequently confirmed by consumers as fraud, and the performance is expected to be further enhanced by the inclusion of Visa data. Ethoca’s growing list of customers includes more than 200 well-known eCommerce brands including 9 of the top 10 internet retailers.

Related reading

boom
new york barclays
company card killer Pleo
Cheque

Leave a comment