Ethoca, a provider of collaboration-based technology solutions for credit card companies and online merchants, has expanded its global search for participants in its ongoing pilot programmes focused on solving the $146bn global ecommerce transaction decline problem.
Ethoca's research and pilot programmes with card issuers and merchants is aimed at increasing card acceptance globally, while ensuring good customers are never turned away.
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The company said that a ‘false decline’ occurs when fraud detection systems discard a good transaction due to the suspicion of fraud. This happens because parties with a stake in the transaction are experiencing growing fraud losses and increasingly high costs to recover them.
To stem the increasing losses, fraud detection systems and processes overcompensate by unintentionally declining valid transactions due to which good customers turn away who might never return. It is a multi-billion dollar lost opportunity for both card issuers and merchants.
Ethoca chief product and marketing officer Keith Briscoe said: “There is little doubt the payments industry is looking at the increasing CNP fraud problem through a different lens – and what we’re seeing is alarming.
“Ethoca believes that the only way to effectively solve this problem is through industry collaboration at the transaction level. We invite card issuers and merchants around the world to join in our active work to eradicate it and help increase acceptance for every participant in the ecommerce ecosystem.”
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By GlobalData
