SIX Payment Services has launched a ‘revolutionary AI-based product’ to help merchants manage the cost of fraud.
The company has strengthened its package of e-commerce services fraud by launching Free by SIX.
The product was launched in co-operation with German-Israeli payment security start-up Fraugster. Free by SIX uses AI and combines the thought processes of human analysts with machine scalability, identifying new fraud patterns as they emerge, in real time, making it possible to detect fraud before it causes damage.
By providing precise decisions, in as little as 15 milliseconds, it claims to ensure the highest conversion rate for merchants. It will also result in chargeback rates dropping immediately, resulting in reduced operational cost. Merchants don’t need any technical integration to use Fraud Free, as it is seamlessly integrated with Saferpay from SIX.
“We help our merchants to minimize their (cost of) fraud and maximize sales: Fraud Free by SIX is a perfect addition to our range of value added services,” said Roger Niederer, head merchant services at SIXPayment Services.
“Merchants that ‘ensure’ their transactions can expect to have less worry about fraud and chargebacks as Fraugster is taking over the liability. Plus: significantly fewer rejections of non-fraudulent transactions results in an improved conversion rate, generating a revenue uplift of up to 15%.”
Merchants across the globe face the issues of fraud, both in terms of number and sophistication, as one of their main concerns. Across the industry, they lose an average of 1.5% of annual revenue or $29bn to fraud. Applying strict rules to block suspicious transactions is not the right answer, with 6 out of 10 consumers never return to a merchant who blocked their transactions according to SIX.
For merchants signing up for Fraud Free from SIX, Fraugster takes over the full liability for every payment transaction that Fraugster accepts. This means fraud no longer cuts into the merchant’s profit margins as Fraugster takes these losses, backed by MunichRe.
It also claims to provide seamless integration, once a consumer has made a purchase decision in a web-shop, a data collection, including information on the cardholder, the device and purchase category is sent via Saferpay to Fraud Free. The solution is PCI-DSS certified and meets all GDPR requirements.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
