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Visa and Ethoca Partner to Help eCommerce Merchants Reduce Fraud [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) 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. According to a release, 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 global payment management company and 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 fulfillment process, limiting fraud losses. An analysis of past transactions suggests Ethoca Alerts enhanced by Visa data could help prevent $300 million in fraud annually. "We are excited about this new layer of security that we hope will make a real difference in an online merchant's fraud losses," said Silvio Tavares, global head of information products, Visa Inc. "Our relationship with Ethoca is another way that we are responsibly using our network intelligence and fraud information to deliver valuable services to merchants." U.S. online retail sales are predicted to reach $370 billion by 2017, up from $231 billion in 2012, according to Forrester Research. Maintaining strong fraud prevention defenses 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. "Our collaborative approach to fraud management enables Visa, issuers and merchants to connect and work together toward a common purpose of reducing fraud." Ethoca's 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 eCommerce brands including 9 of the top 10 internet retailers. More information: www.ethoca.com www.corporate.visa.com ((Comments on this story may be sent to [email protected])) (c) 2013 ProQuest Information and Learning Company; All Rights Reserved. |