RealTime IT News

Visa, CyberSource Launch New E-Commerce Fraud Detector

Visa U.S.A. and CyberSource Corp. Wednesday announced they are co-developing and marketing an e-commerce fraud screening solution.

Dubbed the CyberSource Internet Fraud Screen enhanced by Visa, it is based on CyberSource's existing CyberSource Internet Fraud Screen and will incorporate Visa's fraud modeling capabilities with CyberSource's Internet fraud reduction offering and historical transaction database.

The companies said they expect to promote the product to Visa's member financial institutions and Internet merchants.

The Visa/CyberSource product works by measuring the risk level of an order and returning a related risk score back to the merchant in real time.To guard cardholder privacy, individual cardholder data is not exchanged during the fraud screening process.

The product employs data validation, artificial intelligence pattern matching, network data aggregation and negative file checks as it checks more than 150 different factors to calculate the risk of fraud associated with an online purchase. In addition, e-tailers are able to custom tailor the program for specific shopping seasons or other deviations in expected customer behavior.

Online merchants run a pending credit card request through the online service and receive a rating or "score" assessing the chances of fraud. The e-tailers can then decides whether to accept or reject the order, at the end of the screening process, which averages five seconds.

"As we move into the holiday season, it is important that we provide Internet merchants with the best tools to help them profitably manage their businesses," said Jim Degracia, senior vice president, e-commerce, Visa U.S.A.

"Visa and CyberSource are focusing our collective efforts on combating Internet fraud, which works to provide merchants a secure environment for conducting business on the Internet and drive the growth of e-commerce," said Bill McKiernan, CyberSource chairman and chief executive officer.

The CyberSource Internet Fraud Screen enhanced by Visa is now available, with preferred pricing, from CyberSource and authorized resellers. Merchants are also eligible to receive major discounts off the fraud scoring charges for all Visa transactions.

CyberSource (CYBS) said more than 600 Internet merchants in over 26 countries use their various e-commerce transaction and fraud detection products, including LiquidAudio, Beyond.com, BUY.COM, Compaq Computer, Egghead.com and Nike.com.