Global paytech solution provider Worldpay has forged a new partnership with Capital One, the American bank holding company, in a move to optimise payment fraud decisioning and enhance payment security and efficiency with a data sharing agreement.
Merchants enrolled in the fraud detection and prevention solution from Worldpay, FraudSight, will automatically receive new benefits when accepting a payment made using a card issued by Capital One.
To reduce the chance of false positive declines occurring, caused by strengthened fraud controls, Worldpay has built a direct connection into Capital One’s fraud risk decisioning engine which shares data from individual transactions made using cards issued by Capital One.
Worldpay says it expects this integration within FraudSight could reduce false positive declines by 40 per cent on average based on Capital One’s internal results.
Merchants should also experience improved detection of real fraud events as a result of the enhanced data sharing between the two organisations. FraudSight can significantly reduce losses for merchants by both detecting fraud with higher precision and enhancing authorisation rates through decreased instances of false positive declines.
“Innovation and ingenuity define our work with Worldpay, which is bringing a new level of security to every single payment made with a Capital One card for merchants using FraudSight,” said Jon Borman, head of fraud strategy at Capital One. “Our Direct Data Share tool is being offered to Worldpay as a free, secure and compliant product that allows their merchants using FraudSight to participate.
“By enhancing our data and information sharing, we’re not just cutting fraud, we’re setting a new standard for seamless and secure transactions. The powerful data sharing connection will optimise authorisation rates while protecting merchants, issuers and consumers alike from the risks and losses associated with fraud.”
Tackling a $48billion problem
“At Worldpay, we’re passionate about improving payments. Our data sharing collaboration with Capital One enhances the effectiveness of Wordpay’s innovative FraudSight solution and drives better outcomes for our merchants using the solution,” explained Cindy Turner, chief product officer at Worldpay. “Losses to online payments fraud reached $48billion worldwide last year and that amount is only set to grow as e-commerce markets expand at accelerated rates.
“While fraud detection continues to become more accurate, about six per cent of e-commerce transactions were rejected due to suspicion of fraud and up to 10 per cent of those are false declines.”
The benefits of this collaboration are enabled for US-based merchants using Worldpay payments services and the company’s muti-layered fraud solution, FraudSight, while accepting Capital One-issued card payments.
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