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NewsBriefs

threats. Underdog Fantasy, a gaming platform, is collabo- Fed delays debit cap plan
rating with Sift, a real-time fraud protection service.
Underdog Fantasy's CFO and COO, Dustin Cooper, em- The Federal Reserve's plan to lower allowable debit card
phasized the partners' commitment to player protection interchange faces delays as the deadline for comments on
through innovation and stated that Sift's expertise in the proposal is extended from Feb. 12 to May 12, 2024. The
machine learning will help identify and block emerging plan aims to reduce permissible debit interchange by up to
fraud threats without hindering the player experience. 30 percent, and its implementation was initially scheduled
for mid-2025. However, given the extended comment pe-
Darwinium, a digital security and fraud prevention pro- riod and the usual approval process timeline, it's unlikely
vider, joined forces with AtData, an email address intelli- any new cap will take effect within a year of the comment
gence service, to enhance customer journey orchestration deadline.
with email address insights. This partnership is designed
to enable Darwinium to optimize its orchestration layer Regulated debit interchange, affecting card issuers with
using AtData's email-centric intelligence data, strength- assets over $10 billion, currently has a cap of 21 cents plus
ening decision-making in account creation, management 0.05 percent and an additional penny for fraud preven-
and payment transactions. tion, totaling about 24.5 cents for a $50 purchase. The pro-
posed changes would lower the cap to 14.4 cents plus 4
Forter, a trust platform for digital commerce, introduced basis points and 1.3 cents for fraud prevention, totaling
Abuse Prevention, a next-generation solution to combat 17.7 cents for a $50 transaction.
policy abuse by helping merchants identify and block
abuse through customized self-service policies and simu- The proposal has received mixed reactions, with financial
lations. This initiative, Forter stated, addresses the grow- institutions criticizing the proposed reduction, merchants
ing issue of policy abuse by providing merchants with wanting an even lower cap, and disagreements even with-
more intelligence and control. in the Federal Reserve itself.

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