Tender Armor, which offers a fraud-prevention tool that requires consumers to enter a special code for each online purchase, has attracted private equity funding to expand its development three years after the company’s inception.
The Series A funding via private investors Aubrey Strul and Barry Beck is "multi-million dollar" and will enable Tender Armor to expand operations at its Fort Lauderdale, Fla., headquarters and begin marketing its solution, called CVV+, to financial institutions and payment processors, said Madeline Aufseeser, the company’s founder and CEO.
"Tender Armor is ideally positioned to stem the tide of fraudulent card-not-present transactions," Strul said in the press release.
Tender Armor’s solution layers onto banks’ existing authentication processes, substituting the security code printed on the back of any type of payment card with a three- or four-digit CVV+ code that’s generated anew every day, which consumers may use that day for all card-not-present purchases. Consumers may opt to receive the code via text, email, a mobile app or their card issuer’s website.
Since the company was founded in 2015, Tender Armor gradually developed and tested its software, announcing a collaboration with InComm in late 2016 for a pilot program. Tender Armor is now discussions with financial institutions and processors for direct and white-label implementations of the service, Aufseeser said.
The funding round included money from Strul Logistics and Technology LLC.