Chase Paymentech Helps Protect Retailers against Online Payment Fraud15-Nov-2011
Chase Paymentech, a leading merchant acquirer and payment processor, today announced the launch of its Safetech(SM) Fraud Tools in Europe to help protect merchants from online payment fraud. Available to Chase Paymentech Europe customer-not-present (CNP) retail customers, Safetech Fraud Tools are designed to help online retailers retain legitimate sales while preventing fraudulent transactions.
According to research recently conducted by Chase Paymentech, 62% of mid-sized and large companies that handle customer-not-present (CNP) payments lost money through fraudulent transactions during the past twelve months, costing each company an average of GBP 1.2 million*. Despite the scale of online fraud however, only 12% of companies use a dedicated fraud management system to protect themselves and most companies surveyed still carry out manual checks on possible fraud activity.
"The greater the volume of sales you handle when your customer is not present at the point of sale, the greater you may be exposed to fraud. As your online business grows so will your appeal to fraudsters," said Shane Fitzpatrick, managing director at Chase Paymentech Europe. "There is no magic solution to safeguard online merchants against the risk of fraud. Rather, merchants must develop an attitude towards risk and fraud based on their own business model and appetite towards risk. Merchants should seek expert advice to decide what tools are required to best mitigate their risk exposure. Safetech Fraud Tools provides merchants with innovative technology to help merchants fight the battle against on-line fraud."
Safetech Fraud Tools are an innovate suite of security solutions designed specifically to combat fraud. The solution offers merchants a real-time and automated fraud screening service. Safetech Fraud Tools provide a fraud score with each payment transaction to indicate the level of risk associated with it. Safetech Fraud Tools also includes continuous transaction monitoring, a customisable rules engine and advanced fraud detection technologies.
Safetech Fraud Tools have been available in the United States since January 2011. Merchants that utilise Safetech Fraud Tools have seen chargebacks reduced by 30 to 50 percent. Some have achieved increases in their top-line revenues, while others have streamlined their fraud operations. One top Internet retailer using Safetech Fraud Tools has consolidated its fraud review program to a single full-time employee managing fraud on more than 25,000 orders per day.
"Chase Paymentech is wise to bring together these much needed solutions to their merchants," said Carol Coye Benson, managing partner at Glenbrook Partners. "We now live in a world where managing risks associated with payment fraud is part of the daily routine for merchants everywhere. By closely integrating these tools with the payment processing work streams, the Safetech approach makes the process more efficient."
How Does it Work?
Before a transaction is completed, Safetech Fraud Tools determine the location and device identification of the customer via custom scripts run on the retailer's online payment page. Once the consumer completes the purchase, all data is sent to Chase Paymentech with the authorisation request. Chase Paymentech then sends the authorisation request to the payment brands and receives a response that includes approval or decline, as well as Address Verification Service response data. This data is routed through Chase Paymentech's Risk Inquiry System for analysis, checked against custom rules implemented by the retailer, and a fraud score is calculated and returned with the authorisation response. The retailer then chooses to accept or decline the transaction.
Safetech Fraud Tools represent a powerful Software-as-a-Service (SaaS) based application, including multi-layer device fingerprinting, proxy piercing, dynamic order linking, dynamic risk scoring, custom rules management and auto-decisioning. These applications provide a unique solution that can dramatically enhance a merchant's risk management performance. Safetech Fraud Tools can be used effectively regardless of currency and payment method, simplifying the cost and complexity of merchant's global fraud management initiatives.
About Chase Paymentech
Chase Paymentech, a subsidiary of JPMorgan Chase (JPMC), is a leading provider of payment processing and merchant acquiring. The company's proprietary platforms enable integrated solutions for all payment types, including credit, debit, alternative and mobile payment options. Chase Paymentech has uniquely combined proven payment technology with a long legacy of merchant advocacy that creates quantifiable value for companies of all sizes. In 2010, Chase Paymentech processed more than 20.5 billion transactions with a value exceeding $469.3 billion, including an estimated half of all global Internet transactions. In addition to the ability to authorise transactions in more than 130 currencies, the company provides business analytics and information services, fraud detection and data security solutions. Further information can be found on www.chasepaymentech.co.uk . Chase Paymentech Europe Limited, trading as Chase Paymentech, is a subsidiary of JPMorgan Chase Bank, N.A. (JPMC) and is regulated by the Central Bank of Ireland.
*"CNP Payments at Risk," independent market research conducted by Dynamic Markets on Behalf of Chase Paymentech, April 2011
SOURCE: JPMorgan Chase
Article source: MarketWatch.com.