FIS takes on ecommerce fraud

FIS introduced a new fraud detection tool that aims to boost approval rates and reduce fraud liability for ecommerce merchants. The financial technology parent of leading acquirer Worldpay said its new "guaranteed payments" solution makes it the only payments processor to offer a fully integrated solution that guarantees ecommerce merchants better transaction approval rates and eliminates the financial liability of chargebacks due to fraudulent purchases.

The new offering comes at a time when the global ecommerce market is booming and so, too, are fraud rates.

According to Woldpay's Global Payments Report, the ecommerce market is expected to grow 50 percent by 2024. A recent survey by Stripe, meanwhile, revealed that 64 percent of global business leaders have found it harder to combat fraud since the onset of the COVID-19 pandemic, which, coincidentally, triggered the global surge of ecommerce traffic.

Stripe's data, based on transaction data between 2019 and 2022 as well as a survey of 2,500 business leaders in nine markets, suggests recurring revenue businesses, specifically business-to-consumer sellers, struggle the most with fraud.

"The business impact of fraud goes beyond financial loss," Stripe wrote in a report. The company said its analysis found that the more a business tries to prevent fraud, the more likely it is to block legitimate charges as well, reducing payment conversion rates.

Signifyd, a payment security and fraud prevention provider headquartered in San Jose, Calif., stated its consumer research reveals nearly four in 10 (38 percent) would not make return shopping trips to a merchant if they had a bad online experience, such as a declined order.

Unlocking revenue opportunities

The FIS guaranteed payments solution aims to help ecommerce merchants avoid this fate. Currently available across the Signifyd Commerce Network, guaranteed payments focuses on increasing merchant approval rates, providing guaranteed chargeback protection, and creating a more seamless integration experience for merchants.

The new solution leverages machine learning tools and transaction intelligence to analyze thousands of signals, including identity features like email addresses and payment credentials to instantly distinguish legitimate orders from fraudulent ones, delivering instant decisions that are backed by a 100 percent financial liability shift for any chargebacks on approved orders. The solution is fully integrated into the Worldpay platform, FIS said. "[The] rapid growth in eCommerce has increased fraud activity dramatically. Guaranteed payments brings together two powerful sources of transaction intelligence—the Worldpay data stream produced from processing 40 billion orders annually and the Signifyd Commerce Network of thousands of merchants worldwide," said Vicky Bindra, chief product officer at FIS.

"Together," she added, "we have a powerful solution currently found nowhere else in the market that has the unique ability to combine fraud protection with increased approvals to enhance payment optimization and the overall user experience."

"Merchants using Signifyd experiencer a 5-9 percent increase in top line conversion on average," noted Raj Ramanand, CEO and co-founder of Signifyd. "With this solution, customer retention works hand in hand with fraud elimination to unlock credible revenue growth opportunities."

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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