Ormeno & Associates will offers its merchant clients in Latin America protection against card-not-present fraud under a reseller agreement the Internet-technology consultancy has reached with Retail Decisions Ltd., the London-based card-fraud prevention and payment-processing company announced Oct. 25.

Under the agreement, Argentina-based Ormeno & Associates will offer its clients, which primarily are airlines, Retail Decisions’ ReDShield fraud-prevention system, Carl Clump, Retail Decisions CEO, tells PaymentsSource.

With the agreement, Retail Decisions also expands into a new geographic region, he adds. The company also has offices in Australia, China, Germany, South Africa and United States.

To use ReDShield, merchants first must register for the service online, Clump says. The system, which Retail Decisions hosts centrally, works by constantly monitoring and analyzing card activity using neural technology called Red Prism, which automatically detects fraud patterns, he says.

Users also may use the system to check transactions from the past six months to “see what the merchant’s main fraud drivers are so Retail Decisions can put a specific and customized fraud-prevention service in place,” Clump says.

Merchants’ fees are based on transaction volume, but Retail Decisions declined to comment on specific pricing.

The fraud-prevention system not only tracks fraud, but it also may increase revenue by reducing improperly rejected transactions, Clump notes, noting many merchants try to use their own fraud-prevention systems, which often have strict rules. Because the rules are so strict, merchants may lose up to 7% of good transactions, he says.

“ReDShield’s rules are much more relaxed, which means the end result is an uplift in revenue because they are not losing good transactions,” Clump says.

All online merchants “need to have fraud-detection systems in place because they are dealing with a card-not-present environment,” Beth Robertson, director of payments research at Javelin Strategy & Research, tells PaymentsSource. “And because airline tickets are expensive, the potential fraud losses can be higher than a regular retailer,” she adds.

Indeed, a sophisticated system can “accelerate the fraud-detection process, which means the merchant will not reject a consumer for an invalid reason, therefore improving the overall consumer-purchasing experience,” Robertson notes.

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