NorsePayments wants to make it harder for card thieves to perform fraudulent card-not-present transactions.
NorsePayments, a division of St. Louis, Mo.-based data security provider NorseCorp, is joining with Quatrro Processing Services to offer eCommerceShield to protect online transactions, the companies announced this week.
The cloud-based service will provide three layers of protection, including live Internet Protocol address intelligence, a rules engine and portal for merchants, and fraud experts to analyze data. India-based Quatrro provides analytics and fraud transaction monitoring.
The live IP address intelligence is a key improvement to fraud protection, says Joe Kalin, vice president of payment product and operations for Norse. Analyzing IP addresses allows security providers to alert merchants that a specific computer has been used to initiate fraudulent transactions in the past.
"Most solutions that include some sort of IP address data use stale data that could be up to several months old," Kalin says. "With IP intelligence information changing every second, stale data limits the effectiveness of any solution which relies on it."
For most merchants, a service providing three extra layers of protection would represent a security upgrade over what they currently use, Kalin says.
The live IP analysis is "certainly an improvement over the typical, static IP protection," says Julie Conroy, senior analyst and fraud expert with Boston-based Aite Group.
Even though it is not fool proof, the live IP monitoring with eCommerceShield provides an extra layer of defense "that makes it tougher for the bad guys," Conroy says.
"When deployed in combination with other protections, it is a valuable tool," she adds. "You need a good level of understanding about IP addresses and the Norse approach is one way to do it."
E-CommerceShield operates through a PCI-compliant gateway that integrates with nearly every major payment processor in the world, Kalin says. Norse added its nGate Payment Gateway in April of 2012 as a way to better deliver its fraud-prevention services.
Norse is currently developing the eCommerceShield pricing model, and it likely will be a per-transaction fee in the range of 10 to 25 cents per transaction, Kalin says.
Even though eCommerceShield was created to address the needs of small and mid-size online businesses, it can be used by larger businesses expanding online presence, Kalin says.
"For the first time, small to mid-size merchants will be able to afford the same type of fraud prevention that the large major merchants utilize," Kalin says.