Julie Fergerson, CPFPP’s Post

🚀 Exciting News in the Payments World! 🚀 Last week at MRC Connects Minneapolis, Julie Fergerson, CPFPP of MRC | Merchant Risk Council shed light on a groundbreaking partnership that's set to reshape the landscape of fraud prevention. Capital One, Adyen, and Stripe have joined forces, and here's why it's a game-changer: 🔍 Slow Adoption of 3DS2 in the US: Why? Several factors come into play: 1️⃣ Data Overload: The sheer volume of data fields and the inconsistency in how merchants submit information have made the authentication process cumbersome and less efficient. 2️⃣ Lack of Standardization: What's considered the "standard" integration isn't standardized across all issuers. Each has its own approach, leading to complexities. 3️⃣ Normalization of Data: To leverage machine learning effectively, data needs to be normalized. This has been a challenge, hindering the development of robust fraud prevention mechanisms. 🌟 The Power of Partnerships: By coming together, Capital One, Adyen, and Stripe are tackling these challenges head-on. Their collaboration paves the way for streamlined processes, enhanced data integrity, and ultimately, more effective fraud prevention strategies. 💡 Forward Momentum: This partnership signals a shift towards innovation and collaboration in the payments space. By addressing the pain points together, we're forging a path towards a more secure and efficient payment ecosystem. Moreover, this collaboration should lead to fewer false declines, reducing instances where a card or transaction is flagged erroneously. What's more, merchants pay no extra fees for this protection. Thus far, partnering with the fintechs has resulted in the approval of over a billion dollars’ worth of transactions that would have been declined. This is a win-win! Read more in this exclusive article by Mary Ann Azevedo for more info: https://lnkd.in/exKQ8UfM Let's keep the momentum going and continue to drive positive change in the industry! 💪 #Payments #FraudPrevention #Innovation #Collaboration #MRCConnectsMinneapolis

In an unusual move, Capital One is teaming up with Payment Giants (and rivals) Stripe and Amsterdam-based Adyen to offer a free product aimed at fraud reduction, the financial services giant told TechCrunch. While Capital One has built models to protect its customers from fraud, it was getting stuck because it just “didn’t have enough data,” said head of fraud strategy Jonathan Borman. So it built an open-source project, called Direct Data Share, which he described as an API that allows merchants or anyone in the payment stack to send real time transaction data. By partnering with Stripe and Adyen with Direct Data Share, Capital One can act like a data clearinghouse, identifying fraud across all of their rails. “If we see an IP address through Stripe that turns out to be fraudulent, we can now use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa,” Borman told TechCrunch. But it should also mean fewer false declines, when a card or transaction is flagged but shouldn’t be. And merchants pay no extra fees for the protection. So far, Borman said that the partnering with the FinTechs has resulted in the approval of over a billion dollars worth of transactions that would have been declined. Read more in this exclusive article by Mary Ann Azevedo for more info: https://lnkd.in/exKQ8UfM Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

In an unusual move, Capital One is teaming up with Payment Giants (and rivals) Stripe and Amsterdam-based Adyen to offer a free product aimed at fraud reduction, the financial services giant told TechCrunch. While Capital One has built models to protect its customers from fraud, it was getting stuck because it just “didn’t have enough data,” said head of fraud strategy Jonathan Borman. So it built an open-source project, called Direct Data Share, which he described as an API that allows merchants or anyone in the payment stack to send real time transaction data. By partnering with Stripe and Adyen with Direct Data Share, Capital One can act like a data clearinghouse, identifying fraud across all of their rails. “If we see an IP address through Stripe that turns out to be fraudulent, we can now use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa,” Borman told TechCrunch. But it should also mean fewer false declines, when a card or transaction is flagged but shouldn’t be. And merchants pay no extra fees for the protection. So far, Borman said that the partnering with the FinTechs has resulted in the approval of over a billion dollars worth of transactions that would have been declined. Read more in this exclusive article by Mary Ann Azevedo for more info: https://lnkd.in/exKQ8UfM Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

In an unusual move, Capital One is teaming up with Payment Giants (and rivals) Stripe and Amsterdam-based Adyen to offer a free product aimed at fraud reduction, the financial services giant told TechCrunch. While Capital One has built models to protect its customers from fraud, it was getting stuck because it just “didn’t have enough data,” said head of fraud strategy Jonathan Borman. So it built an open-source project, called Direct Data Share, which he described as an API that allows merchants or anyone in the payment stack to send real time transaction data. By partnering with Stripe and Adyen with Direct Data Share, Capital One can act like a data clearinghouse, identifying fraud across all of their rails. “If we see an IP address through Stripe that turns out to be fraudulent, we can now use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa,” Borman told TechCrunch. But it should also mean fewer false declines, when a card or transaction is flagged but shouldn’t be. And merchants pay no extra fees for the protection. So far, Borman said that the partnering with the FinTechs has resulted in the approval of over a billion dollars worth of transactions that would have been declined. Read more in this exclusive article by Mary Ann Azevedo for more info: https://lnkd.in/exKQ8UfM Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ]

Capital One is teaming up with #fintech giants Stripe and Adyen to offer a free product aimed at #frauddetection. They have built an #opensource project, called Direct Data Share, which is an #API that allows #merchants or anyone in the #payment stack to send real-time #ecommerce transaction data and act like a data clearinghouse, identifying #fraud across all of their rails. As an example, when they see an IP address through Stripe that turns out to be fraudulent, they can use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa. https://lnkd.in/gZCK48pF #fraudprevention #banking #digitalcommerce #creditcards

Customer centricity > competition This week, we shared that Adyen and Stripe are parterning with Capital One to fight #fraud. Capital One is the third largest issuer of Visa and Mastercard credit cards. Fraud is on the rise (global e-commerce fraud losses are expected to spike to $343 billion by 2027 according to Juniper Research). This creates complexity for issuers and consumers who wish to help real customers buy while blocking fraud. The antidote? #Data. By teaming up with Capital One, and having other payment providers do the same, we can more easily identify good (and bad) shoppers. This lets us block fraudsters across our platform and let genuine shopper transactions through faster. Why? At Adyen, our decisions are shaped by the #Formula. Two points specifically add context to this move: ✅ “Winning is more important than ego: work as a team” ✅ “Build to benefit all customers” Our customers will benefit from higher #authrates and fewer #chargebacks while consumers will see false positives decline reduce for a safer, smoother shopping experience. Read more in TechCrunch: https://lnkd.in/dsUTNURZ #payments #tech #fintech #engineeredforambition #adyen #stripe #capitalone

🌟 The future of the payments industry: How managing risk can drive growth ~Summarizing report by McKinsey Payment Industry will soon be confronted with high levels of risk, intensifying regulatory scrutiny, and significant changes in global standards. Some data points: ➡ In 2022, the FTC reported that scams (such as account takeover and authorized push payments) were up 49% from 2021, with consumers losing nearly $8.8 billion! ➡ Fraud losses in the US are up by 60% annually since 2019. ➡ Cyberattacks or outages with over 60% of operational failures result in at least $1 million in losses. Here’s what payment companies can do to minimize liabilities & protect customers. 1. Strengthening risk processes to maintain regulatory compliance 👉 Adhere to industry standards 👉 Invest in compliance 👉 Cultivate a strong corporate culture. 2. Fighting fraud while enhancing the customer experience 👉 Deploy various authentication methods, like biometric identification, liveliness check, device binding and AI/ML monitoring. HyperVerge has really good product here. 3. Building operational resilience to prevent failures: 👉 Conduct thorough reviews of operations, including those provided by third-party service providers. 👉 Have centralized monitoring and testing units. 4. Improving credit and collections processes to address a new normality 👉 Have dedicated collections teams 👉 Use alternative data sources and AI/ML to supplement credit scoring models, enhancing decision-making and managing credit risk exposure. Risk function is more than just to Avoid Problems. It now a lever for growth ! 1. Growing profitably into new markets or segments 👉 Exploring markets that were previously deemed too risky. For e.g. New to Credit Cohort / Gaming. 2. Seeing risk as a product to better serve merchants 👉 Payment service providers can help by offering their risk management capabilities as a service, known as Risk as a Service (RaaS). This market, valued at $10 billion, is growing at a rate of 12 to 14% annually.  👉 Companies are now offering merchants fraud protection, chargeback protection, dispute management, and data enrichment. Companies around txn risk are M2P Fintech, Zeta. 👉 A very good FRM global product around this is Radar from Stripe: https://lnkd.in/dyVBNZ9F →Uses ML that trains on large data →It is built into Stripe and seamlessly integrates with other products like Checkout, so you can access the full Stripe platform. → Radar ingests data from every layer of the financial stack, integrating checkout flow data, rich payments data, and card network and bank information to assess fraud risk. 3. Embracing servicing ops to improve 👉 Payment companies are expanding their servicing operations teams, including fraud operations and embracing technologies such as AI and intelligent workflow automation to have interoperable flows. Report attached here: https://lnkd.in/dxdyXjfC #payments #risk

🗞️🚨 Capital One is teaming up with fintech powerhouses Stripe and Adyen to launch a cutting-edge data share program. This collaboration aims to enhance authorization speed, leading to quicker and more secure transactions worldwide. 🔒🌎 The Direct Data Share program, a joint effort between Capital One, Stripe, and Adyen, will combat fraud more effectively by sharing real-time transaction data among the three partners. 💳 Merchants can benefit from this innovative program at no cost, reducing fraud instances and saving money for customers. 💰 Read more about it now 👇 https://hubs.ly/Q02BM1DX0 #FinancialNews #FraudPrevention #Innovation

Capital One has teamed up with fintech giants Stripe and Adyen in a partnership aimed at combating fraud in the payments industry. 💲 This collaboration involves a new data sharing program called Direct Data Share, where merchants can share real-time transaction data with Capital One, Stripe, and Adyen. The goal is to enhance fraud detection capabilities across their networks, thereby reducing both fraudulent transactions and instances where legitimate transactions are mistakenly flagged as fraudulent. This initiative is expected to save customers money and streamline transaction processes. Read More Here: https://lnkd.in/gVdzzpfa Branded Hospitality Ventures #technology #fintech #innovation #AI Jaclyn Berger Larkin MacDonald Phil Crawford Jason Sweetman Ramsey Aweti Ming-Tai Huh Yanmin Lee Samantha Ku Lilli Donahue

Capital One is joining forces with payment giants Stripe and Adyen to combat fraud in online transactions. They've introduced an open-source project called Direct Data Share, allowing real-time transaction data sharing to enhance fraud prevention. By pooling data from multiple sources, they aim to identify and prevent fraud across their platforms, benefiting both merchants and customers. Capital One has been working with Stripe since 2023 and recently partnered with Adyen, aiming to improve transaction authorization accuracy and reduce false declines. This alliance is seen as mutually beneficial, with merchants benefiting from higher authorization rates and fewer chargebacks, while cardholders experience fewer false positive declines and less fraud.