Visa and Ethoca Collaborate to Help eCommerce Merchants Reduce Fraud
Visa Fraud Intelligence Enhances Issuer-to-Merchant Alerts Service, Available
Through Ethoca and CyberSource
FOSTER CITY, Calif. and TORONTO, June 11, 2013
FOSTER CITY, Calif. and TORONTO, June 11, 2013 /PRNewswire-USNewswire/ -- Visa
and Ethoca are working together on a service that will notify eCommerce
merchants of fraudulent transactions, allowing them to quickly stop the
fulfillment process. The service is intended to help merchants reduce fraud
losses and associated chargeback costs. The Visa-enhanced service is currently
available to U.S. and Brazil merchants through Ethoca and also through
CyberSource, a leading global payment management company and wholly-owned
subsidiary of Visa Inc.
Using near real-time information from Visa on confirmed fraud transactions,
Ethoca is able to send secure alerts to the affected merchants in the critical
24-72 hour window between when eCommerce orders are placed and when they are
fulfilled or shipped, a significant reduction in time from the current average
of three to six weeks it takes for merchants to be notified.
The offering compares transactions from Ethoca's merchant customer base
against fraud data sent by Visa and participating issuers. In the event a
purchase is confirmed as fraudulent, Ethoca's platform immediately notifies
the merchant through its alerts dashboard. This early warning gives merchants
more time to stop the fulfillment process, limiting fraud losses. An analysis
of past transactions suggests Ethoca Alerts enhanced by Visa data could help
prevent $300 million in fraud annually.
"We are excited about this new layer of security that we hope will make a real
difference in an online merchant's fraud losses," said Silvio Tavares, global
head of information products, Visa Inc. "Our relationship with Ethoca is
another way that we are responsibly using our network intelligence and fraud
information to deliver valuable services to merchants."
U.S. online retail sales are predicted to reach $370 billion by 2017, up from
$231 billion in 2012, according to Forrester Research. Maintaining strong
fraud prevention defenses will be important if merchants are going to make the
most out of the opportunity ahead.
"The biggest differentiator in our service is that we provide merchants with
timely access to information not previously available," said Andre Edelbrock,
Ethoca CEO. "Our collaborative approach to fraud management enables Visa,
issuers and merchants to connect and work together toward a common purpose of
Ethoca's proven platform catches up to 73 percent of transactions authorized
by issuers that are subsequently confirmed by consumers as fraud, and the
performance is expected to be further enhanced by the inclusion of Visa data.
Ethoca's growing list of customers includes more than 200 well-known eCommerce
brands including 9 of the top 10 internet retailers.
About Ethoca - Ethoca is a secure network for card issuers and merchants to
connect and work collaboratively outside the payment network in a unique and
powerful way. Ethoca helps card issuers and online merchants recapture lost
revenues and fraud that slips through the cracks of their defences. To find
out more, please visit www.ethoca.com.
About Visa Inc. - Visa is a global payments technology company that connects
consumers, businesses, financial institutions and governments in more than 200
countries and territories to fast, secure and reliable electronic payments. We
operate one of the world's most advanced processing networks—VisaNet—that is
capable of handling more than 30,000 transaction messages a second, with fraud
protection for consumers and assured payment for merchants. Visa is not a bank
and does not issue cards, extend credit or set rates and fees for
consumers.Visa's innovations, however, enable its financial institution
customers to offer consumers more choices: pay now with debit, ahead of time
with prepaid or later with credit products. For more information, visit
 "U.S. Online Retail Sales to Reach $370 Billion by 2017," Forrester
Research, Inc., March 13, 2013.
 As ranked by Internet Retailer in its annual Top 500 Guide (2013 Edition).
SOURCE Visa Inc.
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