Stripe Radar Streamlines Credit Card Fraud Detection
Stripe, a popular online payment platform, launched a new service to enhance credit card detection for ecommerce merchants. Known as Stripe Radar, this program uses the vast information in Stripe’s payment database to identify potentially fraudulent transactions for merchants to decline.
John Collision, one of the cofounders of Stripe, told Business Insider that “half of all Americans have made purchases from one of its customers.” The company processes millions of transactions every day, giving it a much larger database of information than most retailers have on their own. As a result, they are able to detect suspicious activity faster and more effectively than standard fraud prevention platforms, providing superior protection for both merchants and consumers.
Collision explained that many smaller companies review each transaction by hand, or block all international cards for fear of fraud. This is inefficient, and leads to a significant number of unnecessary fraud claims. Stripe Radar is automatic. It does not rely on human reviews, but rather patterns of fraud that the system can detect on its own. This system is able to make adjustments as the fraud industry changes. As new patterns emerge, Stripe Radar will be able to modify its detection system to protect merchants as quickly as possible.
In February 2015, Stripe revolutionized its system by automatically updating shoppers’ credit card information when they get new card numbers. This occurred well before America switched to smartchip cards, but was designed to streamline that process when the time came.
Stripe Radar is free for existing Stripe account holders.