Merchants are gaining a valuable tool in fighting e-commerce fraud as FIS announces their new Guaranteed Payments Solution launched in partnership with Signifyd. For years, merchants operating in a card-not-present environment relied on static rules they designed to guard against fraud by identifying risky transactions. Merchants would score transactions and flag them for review using risk indicators such as a shipping address that is not the same as the billing address, very high-dollar orders, high-value merchandise, etc. Evolving ecommerce technology added in more sophisticated flags such as unusually short browsing or shopping time, unusual product combinations, mismatched IP addresses, etc. Signifyd was founded in 2011 by a pair of Paypal veterans determined to find better ways to combat the growing sophistication of ecommerce fraudsters, and has since grown into the premier provider of fraud screening services to the top 1000 ecommerce retailers.
The Signifyd platform leverages data beyond the scope of an individual retailer’s store to provide a better view of both good customers and fraudsters across the web, then applies artificial intelligence (AI) tools to continually improve the accuracy and access rate of identifying both good shoppers and fraudsters. This platform architecture enables Signifyd to improve the accuracy of their fraud detection as they add more merchants to the data pool and the AI tools continue to learn and detect patterns and anomalies. FIS now takes this to a new level by adding a chargeback guarantee, giving merchants a one-stop solution to both fraud detection and chargeback mitigation. “This rapid growth in eCommerce has increased fraud activity dramatically. Guaranteed Payments brings together two powerful sources of transaction intelligence—the Worldpay data stream produced from processing 40 billion orders annually and the Signifyd Commerce Network of thousands of merchants worldwide,” said Vicky Bindra, Chief Product Officer at FIS. “Together, we have a powerful solution currently found nowhere else in the market that has the unique ability to combine fraud protection with increased approvals to enhance payment optimization and the overall user experience.”
Moreover, the efficacy of the Signifyd solution enables merchants to grow topline revenue by accepting more orders than they would have using old rules-based fraud prevention tool. Our recent Consumer Sentiment Survey showed that 38 percent of consumers would not shop with a merchant again if they had one bad online experience, such as a declined or delayed order,’’ said Raj Ramanand, CEO and Co-founder at Signifyd. “Merchants using Signifyd experience a 5-9 percent increase in top line conversion on average.5 With this solution, customer retention works hand in hand with fraud elimination to unlock incredible revenue growth opportunities.”
Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group