TSYS and Ethoca Join Forces to Combat Fraud
TSYS has announced that Ethoca will now power the TSYS Transaction Recovery Network, which will provide card issuers and online merchants real-time notification of confirmed fraud. This will allow merchants and issuers to quickly recover lost revenue and avoid expensive chargeback processes.
TSYS will automatically deliver fraud data from issuers to Ethoca. At that point, Ethoca can pass confirmed fraud cases to a global merchant network so issuers can recover funds using a transaction reversal or refund. Issuers will, therefore, not need to initiate a chargeback. This process will help issuers save money and take care of fraudulent transactions quickly. It will also help cardholders, who have been victims of fraud, have a better experience.
“With the continued growth of e-commerce payments and the anticipated rise in card-not-present fraud, efficient collaboration between issuing banks and merchants is crucial to help mitigate risk and improve the cardholder experience,” said Andrew Mathieson, group executive at TSYS. “The TSYS Transaction Recovery Network enables a collaborative efficiency that reduces online fraud and operational expenses associated with chargebacks.”
“AITE Group is predicting U.S. card issuer CNP losses will reach $6.4B by 2018, in large part due to the post-EMV shift in fraud from card present to card-not-present channels,” said Trevor Clarke, executive vice president of Issuer Relations and co-founder at Ethoca. “With TSYS’ Transaction Recovery Network, collaboration between card issuers and merchants will now be available to TSYS card issuers worldwide. Through this initiative, we’re executing on a shared vision: helping card issuers find more efficient and cardholder-friendly ways to combat the costly, damaging effects of fraud and chargebacks.”
Ethoca already services thousands of merchants across five continents and hundreds of card issuers of all sizes. According to Ethoca, issuers who have adopted their technology have had the following results:
- An average fraud mitigation rate of 65%
- An 84% resolution rate with highly disputed merchants
- A 75% recovery rate on low-value transactions that would have otherwise been written off
- A 40% recovery rate on 3D Secure losses