Ethoca and FICO Partner to Limit Card-Not-Present Fraud Losses

Ethoca and FICO Partner to Limit Card-Not-Present Fraud Losses

January 25, 2017         Written By Natalie Rutledge

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.”



The information contained within this article was accurate as of January 25, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


natalierutledge

About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at natalie@lowcards.com
View all posts by Natalie Rutledge
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time