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 side of the merchant.
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 optimize 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: Made for merchants who have a chargeback problem. This product covers CNP losses for merchants who have high chargeback rates.
- The new Fraud Free+: Made for merchants who have an acceptance rate problem. This product not only covers merchant’s chargeback losses but also increases their acceptance rates and revenue by accepting more good 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.