E-commerce and payment services company First Data Corp. signed an agreement
allowing it to incorporate HNC Software Inc.’s eFalcon real-time Internet
fraud detection service into its suite of e-commerce offerings.
The move will assist its Internet clients in lowering credit card fraud
losses, First Data said. Financial arrangements were not disclosed.
First Data is marketing the fraud prevention service, under the name
FraudTrap, to its financial institution clients and technology partners,
which in turn can re-brand it as a value-added offering to their online
merchants.
Using neural network and scoring-based technology to indicate the probability
that a transaction is fraudulent, the service enables merchants to
distinguish in real-time between legitimate and fraudulent online shopping
transactions.
First Data said it is integrating FraudTrap with its SurePay payment gateway,
so merchants need only one source for payment processing services, complete
with
security and fraud tools, as well as customer service.
FraudTrap is the first component in what will be a suite of First Data
Internet fraud tools, with the ultimate goal of guaranteeing payments, said
John Duncan, executive vice president and general manager of Internet
Commerce at First Data.
First Data provides merchant processing services to more than 2 million
brick-and mortar locations and over 95,000 online merchants. In 1999, First
Data processed more than 6
billion credit, debit and stored value card merchant transactions
representing nearly $330 billion in sales volume.
HNC markets predictive software solutions for service industries, including
financial, insurance, telecommunications and e-commerce. By accurately
predicting customer behaviors, clients can create initiatives to mitigate
risk and attrition; improve customer service; develop marketing programs to
enhance profitability, and detect fraudulent customer transactions.
