Verifi Inc., which provides risk management services for card-not-present merchants, has formed a partnership with Demandware Inc. to provide online merchants with fraud-prevention and risk management services.
Through the partnership, which was announced Jan. 12, online merchants using Demandware's e-commerce platform may integrate it with Verifi's fraud-prevention service, said Cory Capoccia, Verifi's vice president of strategic partnerships.
"Verifi becomes the aggregator for online merchants and manages all third-party services merchants may use to detect fraudulent customers and transactions," Capoccia said. These services include evaluating each transaction and the payer's Internet protocol address to look for fraudulent information, he said.
The type of services that Verifi offers "definitely has value for merchants, especially smaller merchants," said Julie Conroy McNelley, an analyst with Aite Group LLC.
Larger merchants may want to manage their own fraud systems because they want the control, she said.
But for smaller merchants, this service saves time and enables them to manage their fraud-detection systems in one place, McNelley said.
"Verifi basically acts as an outsourced information-technology resource as well as a fraud expert," she said.
