Issuers know up to four to six weeks earlier than the merchant when a card has been compromised and canceled. If affected merchants can get this information in real time, they can stop the vast majority of undetected fraud and prevent chargebacks.
Toronto, ON (PRWEB) February 03, 2011
Ethoca, the leader in collaborative ecommerce fraud management, has been named one of the top three finalists for the 2011 Merchant Risk Council Emerging Technology Awards (METAwards). Ethoca was nominated for Issuer Confirmed Fraud Alerts™, a service that helps card not present merchants (businesses that accept orders via the web, catalog, phone, or fax) stop preventable fraud losses and minimize chargeback fees.
With Issuer Confirmed Fraud Alerts, card issuers notify Ethoca when a credit card has been canceled due to confirmed fraudulent use. Ethoca distributes real-time alerts to the affected merchants, either individually via email or by populating an alert management queue in Ethoca’s secure portal.
“Issuers know up to four to six weeks earlier than the merchant when a card has been compromised and canceled. If affected merchants can get this information in real time, they can stop the vast majority of undetected fraud and prevent chargebacks,” said Ethoca’s president and co-founder Keegan Johnson. “Ethoca made it possible by building a fast, secure hub for issuer-merchant communications. Finally, merchants and issuers can work together to stop fraud, rather than shifting the liability of fraud from one party to the next. It is an honor for the MRC to recognize Ethoca for developing this innovative, effective approach to reducing CNP fraud.”
Forty percent of the alerts Ethoca sends identify fraud that merchants had missed. Merchants receiving the real time alerts have cut their related CNP fraud costs by up to a third – and stand to cut them further as more card issuers participate. The savings come from stopping orders placed by fraudsters before fraudsters receive goods or services; saving on staff time needed to handle chargebacks; and cutting down on the fees paid for submitting chargebacks.
MRC’s METAwards recognize the most innovative payment, fraud and security tools in electronic commerce as judged by a panel of online and multi-channel merchants. MRC said in a Tuesday press release that the METAward finalists are "at the forefront in helping online and multi-channel merchants mitigate online payment risks and advance the MRC’s vision of making electronic commerce more efficient, safe and profitable.”
The METAward merchant judging panel is comprised of representatives from leading brands including: BestBuy.com, eBay, Go Daddy, HP, Microsoft, NCsoft, Tiffany & Co., T-Mobile, Urban Outfitters, among others. The 2011 METAward winner will be announced at the MRC’s Annual e-Commerce Payments and Risk Conference in Las Vegas on March 23, 2011, and will be hosted by Tom Donlea, Executive Director of the MRC and John Stewart, Editor of Digital Transactions Magazine.
Ethoca’s mission is to eliminate ecommerce fraud through collaboration. Ethoca provides fraud detection services to card not present merchants (those receiving orders by website, fax, catalog, or telephone) and to card issuers. It partners with payment processors, fraud prevention vendors, identity solution providers, card acquirers, card issuers, resellers and industry organizations.
Ethoca offers free payment fraud prevention resources at its website, including:
- "Fraud Attacks Cross Industries" - the Ethoca study involving merchants representing 61% of the top 500 Internet merchants as measured by revenue and as defined by Internet Retailer for 2009. Data from the Issuer Confirmed Fraud Alerts service provided the basis for this study published January 25, 2011.
- Fraud Intel subscription - Ethoca executives publish articles at Fraud Intel on CNP fraud challenges, best practices, news, and trends.
Follow Ethoca at @ethocanews.
Ethoca™ is a registered trademark of Ethoca Limited.
# # #