With e-commerce becoming a bigger target for payment data theft, Global Payments Inc. intends to provide its online merchants with another set of fraud-detection tools.
The Atlanta-based merchant processor announced Oct. 12 it will offer fraud screening from Accertify Inc., an Itasca, Ill.-based online fraud-prevention company, through the Global Transport payment gateway.
Merchants in the United States, Canada, United Kingdom and Asia-Pacific region will have access to the service, which protects against card-not-present fraud, counterfeit attempts and identity theft, Global Payments says.
The service features Interceptas, Accertify’s fraud detection program, which allows merchants to evaluate potential fraud cases as they occur and monitor fraud trends updates.
The Accertify risk-management technology is incorporated onto the Global Payment Global Transport gateway in such a way that the consumer making a purchase would not be aware of the fraud-prevention screening, Jeff Liesendahl, Accertify president, tells PaymentsSource.
Global Payments merchants will continue to deal directly with Global for pricing, service and support, Liesendahl says. They will also receive fraud alerts and fraud data reports from their existing Global Payments system after transaction-screening takes place via Interceptas, Liesendahl adds.
Sid Singh, Global Payments senior vice president and global head of product, views the fraud protection as a vital aspect of e-commerce business.
“The e-commerce segment continues to grow at a healthy pace, and merchants are doing more sales through this channel than ever before, making it vital for all of our merchants to have stringent protection in place,” Singh said in a company press release.
With chip-and-PIN technologies gaining use worldwide at the point of sale, fraud rates are likely to continue rising in card–not-present channels, Singh noted.
“Our e-commerce merchants will now be able to safeguard their interests without compromising on sales revenues,” Singh said.
One industry analyst agrees that Global Payments’ effort to strengthen online fraud detection comes at a time when e-commerce is becoming a more appealing pathway for criminals.
“E-commerce will come under more attack when the EMV smartcard becomes more prevalent in the United States because the crooks will not be able to skim point-of-sale terminals for data when the computer-chip card is in use,” Julie Conroy McNelley, senior analyst and fraud expert with Boston-based Aite Group, tells PaymentsSource.
The increase in e-commerce fraud has been proven by studies everywhere EMV is in use, McNelley says.
“It’s like squeezing a balloon, the air has to go somewhere, in this case the fraud has to go somewhere,” she adds.
Other companies may adopt a multi-pronged fraud-defense strategy similar to Global Payments’ in the future by offering a layer of security in addition to their own analytics for e-commerce transactions, McNelley suggests.
Accertify, a wholly-owned subsidiary of American Express Co., collaborated with First Data Corp. earlier this year to launch Fraud FlexDetect, an e-commerce fraud-detection service (
Accertify also completed a partnership with Frontier Airlines two months ago for use of Interceptas to provide protection for online ticket purchasing (
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