The solution enables merchants to have a direct connection with issuing banks to share Forter’s fraud insights to increase authorisation rates and decrease false declines.
Sarah Strauss, Head of Card Fraud at Capital One, stated: “It’s game-changing to be able to enhance authorisation decisions in real-time as a result of our partnership with Forter, improving the accuracy of our decisions and leading to better overall experiences for our customers. We are always looking for ways to better serve and protect our customers and in our initial work with Forter, we are seeing a reduction in false declines with no material increase in fraud, meaning our customers are shopping more seamlessly and more securely.”
While both merchants and issuing banks need to perform risk evaluations on every transaction, issuing banks are forced to make their authorisation and fraud decisions with limited data around the legitimacy of these transactions.
This can lead to false declines by issuers whereby some valid transactions are incorrectly suspected of fraud and not approved. According to research from AITE Group, the lost income to merchants and issuers resulting from false declines is predicted to be over $443 billion in 2021 – 75x larger than the actual fraud losses they face. Integrating Forter Trusted Authorization with Capital One’s Enhanced Decisioning Data API ultimately creates value for both customers and the merchants from which they purchase.
“With Forter Trusted Authorization, we are shining a light into what was once a black box process for merchants and an area of lost revenue for issuers,” added Michael Reitblat, Co-Founder and CEO of Forter. “This solution is a giant step forward in our mission to create an ecosystem of trust in commerce – one where merchants, issuing banks, and consumers can work together to ensure the success of every legitimate transaction as seamlessly as possible.”