Ethoca and FICO Partner to Limit Card-Not-Present Fraud Losses
Ethoca and FICO have partnered to make it easier for card issuers to maximize the recovery of card-not-present (CNP) fraud losses.
CNP fraud not only costs card issuers financially, but the inefficient chargeback processes also create a poor cardholder experience. Ethoca Alerts works with FICO’s Falcon Fraud Manager to provide a CNP fraud solution that works through every stage of the fraud lifecycle, including protection, prevention, alerting, investigation and recovery.
Card issuers who are already using Falcon can opt in to Ethoca’s network through direct integration. Ethoca Alerts will kick in when CNP fraud has been confirmed by a cardholder and their bank. When a card issuer confirms fraud, it will be flagged in Falcon, and Ethoca will distribute alerts to more than 5,000 merchants. The merchants can then act on the alerts by not fulfilling fraudulent orders and issuing the cardholders a refund. This process will take hours instead of the weeks that are now typical in the chargeback process.
“At FICO, we’re continuing to strengthen the arsenal of analytics-driven solutions we deliver to our clients and their ecosystem,” said Robert Duque-Ribeiro, Vice-President and General Manager for Fair Isaac Advisors at FICO. “Our partnership with Ethoca broadens our complement of fraud management solutions and expands the partnership between issuers and merchants. This first step in our partnership gives card issuing banks access to the largest card issuer-merchant collaboration network in the world. That means they are now able to recover issuer-liable fraud losses like 3D Secure transactions and low-value transactions they would normally write off, while making the recovery of merchant-liable CNP fraud transactions faster and much more cost-effective. Crucially, the speed with which the Falcon and Ethoca transmission can be effected now enables the card payment system to frustrate and prevent the criminals getting access to value, not simply stop the transaction.”