Ingenico Group, the global leader in seamless payment, has expanded its fraud detection and management capabilities with a new, real time solution that enables merchants to increase revenue by optimising their acceptance rate and reduce customer churn.
The new solution leverages sophisticated Artificial Intelligence (AI) technology developed by the German-Israeli payment security company Fraugster to identify and separate fraudulent transactions from legitimate ones. This enables a new fraud protection insurance model, which means fraud is reduced to zero for merchants. If any fraudulent transactions slip through the solution, the costs are absorbed by Fraugster. As the solution is fully integrated into Ingenico’s platform, adding the fraud solution is simple and only requires one click activation with no additional technical implementation on the merchant’s side.
As the total global eCommerce market continues to grow, so do the costs associated with online fraud and chargebacks. This is particularly true for international merchants, because cross-border payments have significantly higher risk of fraud than domestic payments do. Increasingly, sophisticated cyber criminals also take advantage of the shift to mobile payments, where fraud losses are higher as percentage of revenue. In addition to monetary losses, online fraud also brings with it the risk of potentially severe reputation damage. Consumers are less inclined to shop at merchants that have been associated with fraud. Yet merchants who implement overly strict fraud rules risk rejecting legitimate customers, leading to further monetary and reputation loss.
As a global Payment Service Provider, Ingenico not only processes online and mobile payments, but also provides value-added services to further optimise merchants’ financial flow. The new fraud solution offers merchants a choice of two products that each target a side of the risk management coin.
• The Fraud Free Product: For merchants who have excessive chargebacks, Fraud Free covers CNP losses for merchants who have high chargeback rates.
• The new Fraud Free+: For merchants who have an acceptance rate problem, Fraud Free+ not only covers merchant’s chargeback losses but also increases their authorisation rates by accepting more genuine customers.
Automated risk management and reporting provide transparency as well as instant, detailed feedback on performance - allowing in-house risk teams to focus on other tasks.
“Fraud is a fact of life for online merchants, but that doesn’t mean they have to just accept it. At Ingenico, we reduce exposure to fraud to a minimum with efficient tooling and expertise,” said Gabriel de Montessus, VP Retail Global Product and Marketing for Ingenico Group. “Artificial intelligence is the future of fraud prevention, and this solution will help our merchants improve their performance.”
“This partnership combines Fraugster’s innovative technology and disruptive vision with Ingenico’s experience, global merchant portfolio and ability to execute at scale,” said Max Laemmle, CEO and founder of Fraugster. “Independently, we each have a piece of the puzzle. Together, we will take that next step and reduce online fraud to zero for merchants.”