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CompanyProfile

ISO/MLS contact:
Chase Harmer, CEO
Kyle Allred, Vice President of Sales
408-770 9064,
Ext. 1002 for Harmer; Ext. 1006 for Allred
chase@paycertify.com; kyle@paycertify.com
www.paycertify.com

Built to boost the ISO, MLS channel

ayCertify is helping ISOs and merchant level often reserve accommodations through third-party
salespeople (MLSs) make the world a better travel sites. Those booking engines then "own" the
place for their merchants by reducing charge- relationship; the hotel doesn't exchange information
P backs, lowering interchange fees and shifting directly with the consumer. If the consumer refuses
liability to issuers, according to Chase Harmer, the com- to pay, the hotel has trouble pursuing justice because it
pany's Chief Executive Officer. The Los Gatos, Calif.- doesn't have documented electronic correspondence with
based vendor is accomplishing those formidable tasks by the consumer. But PayCertify ties the third-party booking
providing a painless way to tie consumers to their card- information to the hotel's IT system as soon as it's received.
not-present (CNP) purchases, he said.
PayCertify then creates a validation link and sends it via
Indelibly connecting card users to their transactions text message or email to the consumer, Harmer said. The
fights first-party fraud by eliminating the opportunity consumer clicks to confirm the booking, and PayCertify
for consumers to deny they made the purchase, Harmer creates a token to document the transaction and bring
noted. When cardholders can no longer worm their about the handshake between the card brand and the
way out of their obligations, the number of chargebacks issuer. The process also works with other purchases.
declines to almost zero, he added. To capitalize on that
reduction in chargebacks, PayCertify is integrated with Most issuers onboard
Verified by Visa and Mastercard SecureCode. Those Not all issuers are using the latest version of 3D
integrations verify who's making the purchase and Secure, so the handshake occurs in about 80 percent of
thus enable the card brands and issuers to commit to an transactions made through PayCertify, Harmer stated.
electronic 3D Secure "handshake." When that handshake In addition, some transactions don't qualify for the
occurs, the card brand reduces interchange fees for the liability shift because the purchase is deemed unusual,
merchant and shifts liability for the transaction from the he added. PayCertify's fraud protection can operate with
merchant to the issuer. the company's own processing and gateway services
or with services from other vendors, Harmer noted.
What's more, merchants give up nothing to gain those However, obtaining everything from PayCertify heads
victories. That's because PayCertify banishes the friction off integration challenges, he suggested.
that has prevented retailers from using other methods of
connecting customers to purchases, Harmer stated. Those Fraud prevention at PayCertify doesn't end with 3D
other approaches, including projects by Visa, Mastercard Secure, Harmer said. For instance, the company partners
and American Express Co., ask consumers to identify with Kount Inc., a vendor that combats criminals
themselves by providing additional information, like the who use proxy servers to hide their location when
last four digits of a bank account number. Consumers making fraudulent purchases with a card from another
often balked at those requests and simply abandoned geographic area. PayCertify also developed proprietary
their online shopping carts, Harmer said. That caused social scoring, which rates consumers based on their
merchants to reject the verification process to avoid online followers, friends, and postings on social networks
friction for consumers. such as Twitter and Facebook. In addition, the company

Easing the friction of verification offers fraud insurance.
PayCertify discovered how to avoid friction in fraud Most of PayCertify's business originates with ISOs and
prevention when it was developing a way for hotels to MLSs, who earn residuals from selling the technology and
combat the problem of "no shows" – people who book also benefit because PayCertify services build customer
a room, don't show up and then refuse to pay. The no- loyalty that curbs merchant attrition, Harmer noted. "We
show problem is compounded by the fact that travelers are built for the ISO and agent channel," he said.

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