Kount, the Boise, Idaho-based Software as a Service (SaaS) platform designed to simplify fraud detection and improve profitability, announced it has partnered with Verifi, the payment protection and management company.
The collaboration will extend Los Angeles-based Verifi’s dispute management offerings to Kount’s platform. Verifi's solutions are designed to enable businesses to manage disputes, prevent chargebacks, receive notifications of fraud and disputes. Merchants will also have the ability to resolve multi-card brand disputes.
Verifi’s solutions are expected to leverage Kount’s portfolio of services, with clients expected to see five times the return on investment in the prevention of fraud, loss and chargebacks.
“Kount is unmatched in experience with friendly fraud prevention, and our Verifi-enhanced platform solutions fulfill the needs we have observed in the industry for years,” said Scott Adams, Kount’s vice president of friendly fraud, in a statement. “Previously, it was cumbersome for companies to fully utilize tools available through major card brands because of the need for tricky integrations and developer work."
In June, Visa signed an acquisition agreement with Verifi. Visa said the goal of the purchase is to enhance its chargeback and dispute resolution infrastructure.
“As the way people pay and get paid continues to evolve, the way buyers and sellers communicate to resolve transaction disputes must also keep up with this rapid pace of commerce,” said Mary Kay Bowman, Visa’s global head of seller solutions. “The addition of Verifi’s technology to Visa’s risk management solutions will introduce greater collaboration and insights to help resolve disputes quickly.”
The new tech tools, Visa said, will be integrated with the rest of its risk management services, including those delivered by CardinalCommerce and CyberSource.
The September FI Fraud Decisioning Playbook by PYMNTS examines how lenders are strategizing to accurately and cost-effectively identify wrongful chargebacks. While FIs offer cardholders the ability to file chargebacks so they can get their money refunded to them for wrongful purchases, some dishonest shoppers may file chargebacks on transactions they genuinely made, so-called “friendly fraud.”
A recent study examining transactions for the past three years found that online retailers experienced wrongful chargebacks 50 percent more often than chargebacks that were in response to criminal activity.
FIs must investigate all chargeback claims so they can protect merchants from such fraud, while also safeguarding honest consumers from criminal fraud.