Forter will be integrated to Capital One’s Enhanced Decisioning Data platform to reduce fraud. Forter is able to establish bank partners by leveraging its Global Merchant Network that can help identify that the cardholders at the merchant location are assuredly a Capital One cardholder.
In performing this function for banks, Forter is in a position to collect more information about cardholders that will further elevate its ability to detect fraudulent transactions as identified in the report “e-Commerce Authorization Data: Patching the Patchwork”:
“While both merchants and issuing banks need to perform risk evaluations on every transaction, issuing banks are forced to make their authorization and fraud decisions with limited data around the legitimacy of these transactions. This can lead to false declines by issuers whereby some valid transactions are incorrectly suspected of fraud and not approved. According to research from AITE Group, the lost income to merchants and issuers resulting from false declines is predicted to be over $443 billion in 2021 – 75x larger than the actual fraud losses they face.
Integrating Forter Trusted Authorization with Capital One’s Enhanced Decisioning Data API ultimately creates value for both customers and the merchants from which they purchase. “It’s game-changing to be able to enhance authorization decisions in real-time as a result of our partnership with Forter, improving the accuracy of our decisions and leading to better overall experiences for our customers,” said Sarah Strauss, Head of Card Fraud at Capital One. “We are always looking for ways to better serve and protect our customers and in our initial work with Forter, we are seeing a reduction in false declines with no material increase in fraud, meaning our customers are shopping more seamlessly and more securely.”
Powered by Forter’s Global Merchant Network and advanced AI technology, Forter Trusted Authorization bridges the gap between merchants and issuing banks, allowing both to leverage Forter’s fraud insights to improve transaction authorization decisions. Based on initial merchant data, Forter’s fraud insights enable issuers to reduce declines due to suspicion of fraud by up to 50% – all while reducing fraud rates. This ultimately translates into a 1-3% increase in overall authorizations — benefiting both merchants and issuers and improving the overall experience of the customer.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group