CyberSource Corporation and Visa U.S.A Wednesday announced the integration of a new, more powerful fraud detection model into the CyberSource Internet Fraud Screen enhanced by Visa, Version 4.0 (IFS V4.0). The new model, built using a combination of neural network and rules-based modeling technology, is the first to use card association reported fraud information to accurately predict Internet fraud.
This new model is the second phase in a partnership between CyberSource and Visa U.S.A. to jointly develop, promote and expand the capabilities of the CyberSource Internet Fraud Screen enhanced by Visa. During this phase, Visa validated CyberSource’s fraud screening system against the card association’s extensive history of reported fraud information -? enabling CyberSource to refine the accuracy in weighting the different variables that are analyzed for fraud. The relationship also involved the joint development of a combined rules-based and neural network model and a closed-loop data modeling process based on Visa’s conclusive transaction results and CyberSource’s Internet transaction histories.
“Our partnership with Visa continues to reap rewards for online merchants, consumers and our financial institution partners as we hone our fraud screen and provide a secure environment for conducting business on the Internet,” said Evan Ellis, president and COO for CyberSource. “This reinforces our leadership position in providing an accurate fraud detection system for Internet-initiated transactions.”
The combination of expert rules-based and neural modeling together with Visa’s extensive history of reported fraud allows the CyberSource Internet Fraud Screen enhanced by Visa to rapidly detect both obvious and subtle erroneous patterns across thousands of transactions. This helps merchants to better assess and make judgements on potentially fraudulent transactions across all card types and reduce the risk of rejecting a valid order.
“The new closed-loop system allows merchants to streamline order acceptance practices, helps to create a secure shopping environment for consumers and merchants alike, and furthers mainstream acceptance of eCommerce,” said Laurie Ailworth, senior vice president, Product and Operation for e-Visa.
The Importance of Card Association Modeling and Reported Fraud Validation
Unlike other services that rely on merchants or consortiums to voluntarily provide data on fraudulent transactions, the new CyberSource/Visa model is the first to use definitive and card association transaction results to model fraud risk. Such modeling delivers one of the most accurate and predictable means of managing fraud risk. The enhanced model is proven to increase fraud capture rates over the previous model by at least 20 percent.
About the Internet Fraud Screen enhanced by Visa
The CyberSource Internet Fraud Screen enhanced by Visa screens eCommerce transactions and measures the predicted level of risk associated with each order, returning a related risk score back to the merchant in real time. This service not only provides a more efficient risk management tool for merchants, but also provides a higher level of security online. Keeping with the Visa policy of ensuring cardholder security, no individual transaction data is released by Visa during any development or fraud screening processes.
The CyberSource Internet Fraud Screen enhanced by Visa uses data validation, artificial intelligence pattern matching, network data aggregation and negative file checks as it examines more than 150 different factors to calculate the predicted risk of fraud associated with an online purchase. Merchants have the flexibility to tailor specific seasonal or other deviations in their expected customer behavior. Online merchants can run a pending credit card request through this online service and receive a rating or “score” that assesses the likelihood of fraud. Merchants then make a decision about whether to accept or reject the order. The average time for the fraud screening process is less than one second.
Pricing and Availability
The CyberSource Internet Fraud Screen enhanced by Visa version 4.0 is available immediately and detects fraud for all major/credit/debit card types. The partnership between CyberSource and Visa continues to entitle US merchants to receive a discount on IFS transaction fees when a Visa credit card is presented. For more information on pricing, please contact a CyberSource representative or an authorized CyberSource reseller.
About Visa U.S.A.
Visa is the leading card brand and the largest payment system worldwide. It plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions, their cardholders and the global economy. Visa is the only consumer payment system to facilitate $1.4 trillion worth of purchases of goods and services in a fiscal year. Visa’s 600 million cards are accepted at more than 17 million worldwide locations, including more than 500,000 ATMs in the Visa/PLUS Global ATM Network. Visa’s Internet address is [http://www.visa.com].
About CyberSource Corporation
CyberSource is a leading developer and provider of eCommerce transaction services, and a pioneer in Internet fraud detection. More than 1200 Internet merchants in more than 26 countries have chosen to use CyberSource services. CyberSource provides mission-critical reliability with the CyberSource Internet Commerce Suite, offering merchant-controlled, real-time services including: Payment Services, Gift Certificate and Promotional Services, Tax Services, Risk Management Services, Distribution Control Services, and Fulfillment Management Services. Customers of CyberSource include leading Internet merchants and businesses selling online including: Amazon.com, Ashford.com, Beyond.com, BUY.COM, Casio, Compaq Computer, Mercata.com, MotherNature.com, Nike.com, Rx.com and Remedy. For more information visit [www.cybersource.com] or email to firstname.lastname@example.org or email@example.com.