Their combined powers now allow merchants to have a direct connection with issuing banks to share Forter Trusted Authorization’s fraud insights, powered by its Global Merchant Network and advanced AI technology, which in turn increases authorization rates and decreases false declines — a win for retailers, banks and consumers.
And the need for speed is real. Both merchants and issuing banks need to perform risk evaluations on every transaction, the companies said, and issuing banks are “forced to make their authorization and fraud decisions with limited data around the legitimacy of these transactions.” This can lead to false declines by issuers — and some valid transactions are incorrectly suspected of fraud and not approved, the companies explained.
Lost income to merchants and issuers resulting from false declines is predicted to be more than $443 billion in 2021, which is 75 times larger than the actual fraud losses they face, according to research from AITE Group.
Sarah Strauss, head of Card Fraud at Capital One, said it is “game-changing to be able to enhance authorization decisions in real-time as a result of our partnership with Forter, improving the accuracy of our decisions and leading to better overall experiences for our customers.”
“We are always looking for ways to better serve and protect our customers and in our initial work with Forter, we are seeing a reduction in false declines with no material increase in fraud, meaning our customers are shopping more seamlessly and more securely.”
The integration’s symbiosis allows both customers and merchants to benefit with lasting value. Based on initial merchant data, Forter’s fraud insights enable issuers to reduce declines due to suspicion of fraud by up to 50 percent, while simultaneously reducing fraud rates, the companies said. This converts into a 1 to 3 percent increase in overall authorizations, benefiting both merchants and issuers and improving the overall experience of the customer, they explained.
Michael Reitblat, cofounder and chief executive officer at Forter, said, “With Forter Trusted Authorization, we are shining a light into what was once a black box process for merchants and an area of lost revenue for issuers.”
“This solution is a giant step forward in our mission to create an ecosystem of trust in commerce — one where merchants, issuing banks — and consumers can work together to ensure the success of every legitimate transaction as seamlessly as possible.”
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