Toronto-based Ethoca and FICO have formed a partnership to enhance card issuers’ access to Ethoca’s tools providing immediate notification of card-not-present fraud in e-commerce transactions.
FICO has agreed to streamline the process for issuers using the FICO Falcon Fraud Manager to access Ethoca’s Global Collaboration Network through a direct integration.
The combination aims to enhance issuers’ ability to react to and prevent e-commerce fraud in card-not-present transactions by leveraging Falcon’s credit-scoring analytics with Ethoca Alerts, a service that notifies issuers of cases of confirmed online fraud.
The new approach makes it possible for issuers to react much faster to all types of online fraud, including many types of transactions that previously slipped through the cracks, according to the release.
“This partnership means card issuing banks are now able to recover issuer-liable fraud losses like 3D Secure transactions and low-value transactions they would normally write off,” said Robert Duque-Ribeiro, vice president and general manager for FICO’s Fair Isaac Advisors, in a press release.
Ethoca sees its collaboration with FICO as logical extension of both companies’ services. “(The partnership) adds a new layer of value—recover—that can be delivered only through effective collaboration between card issuers and merchants,” said Trevor Clarke, Ethoca’s executive vice president of business development, in the release.
Ethoca in February of 2016 partnered with payments processor TSYS to create a new tool, the Transaction Recovery Network, enabling consumers and merchants to receive near real-time notification of confirmed e-commerce fraud, to reduce chargebacks.