In a move to help merchants thwart fraudulent e-commerce chargebacks, payments technology provider ACI Worldwide has entered a partnership with risk management company Chargebacks911.
ACI Worldwide says its customers have been seeking a solution that would more effectively mitigate chargeback risks with a proactive approach. In establishing the partnership that will combine Chargebacks911 technology with ACI's ReD Shield tools for fraud detection in card-not-present transactions, the companies hope to provide more stability and security to consumer payments in the U.S. and Europe.
“Merchants today are aiming to be more proactive with chargeback management, no longer accepting chargebacks, but successfully fighting them to protect their bottom line," Jackie Barwell, director of fraud product management at ACI Worldwide, said in Feb. 1 press release.
The companies point to recent industry trends in finding this an opportune time for this collaboration. Citing JP Morgan Chase studies, ACI said the frequency of chargeback issuances is growing 20% annually, compared to transaction growth of just 7% in the same time period.
"Merchants worldwide want a tactical approach to revenue recovery; one that achieves sustainable growth," Monica Eaton-Cardone, CIO of Global Risk Technologies, parent company of Chargebacks911, said in the release. "We’re honored the company has recognized our strength in this area, and we look forward to helping these merchants better manage their chargeback issues.”
A year ago, ACI Worldwide began working with The Clearing House on its project to create a faster payments rail for banks worldwide.