Security & Fraud

Online Merchants May Be Off The Hook For Credit Card Fraud

Signifyd Vice President of Partnerships Skye Spear predicted that within three years merchants won’t be on the hook for credit card fraud online thanks to companies like Signifyd that use real-time machine learning to prevent fraudulent transactions from going through.

According to a report in Forbes, Signifyd’s technology reviews the credit card orders that are coming to eCommerce websites and decides if the order is safe. If the technology deems it safe, it will guarantee the order, and if it turns out to be a fraud, Signifyd and rivals Forter and Riskified will reimburse the online retailer. Signifyd charges about 1 percent of the order for its protection.

“We’re seeing tremendous penetration in SMB [small and medium-sized businesses] mostly through partners,” Spear said in the report. “We’re being embedded into Magento [a large eCommerce platform], and you will see some more announcements about our being embedded in other eCommerce platforms.”

The report noted the startup uses a sales team and eCommerce platforms to reach SMBs that want a tool to prevent online credit card fraud. Spear noted in the report that some of the biggest retailers online already use Signifyd.

“We want to be the BASF of the e-payment fraud world,” Spear explained, referring to the giant chemical company’s slogan. “We don’t make a lot of the products you buy. We make a lot of the products you buy better.”

Earlier in February, Signify joined the Salesforce Partner Program to help Salesforce Commerce Cloud customers get fraud protection as they aim to grow their businesses around the country.

“The world’s leading brands leverage Salesforce Commerce Cloud to deliver secure, seamless, personalized experiences for their customers across every channel,” said Signifyd’s CEO, Raj Ramanand, in a press release at the time, noted the report. “We take the same approach to fraud, eliminating it in-context, real-time and with machine learning built upon decades of domain expertise. Our financial guarantee ensures Commerce Cloud merchants have a fully predictable cost for fraud that declines over time while their order acceptance rates and margins increase.”

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