Visa to buy Verifi to improve risk and chargeback management
Visa has signed a definitive agreement to acquire the Los Angeles-based chargeback and dispute resolution platform provider Verifi.
Verifi specializes in providing SaaS-based technology that assists in quickly resolving transaction disputes and chargebacks. The platform connects all parties in the dispute management process in near real-time to resolve disputes before they become a chargeback. Verifi serves more than 25,000 accounts around the world.
“The addition of Verifi’s technology to Visa’s risk management solutions will introduce greater collaboration and insights to help resolve disputes quickly,” stated Mary Kay Bowman, global head of seller solutions at Visa in the press release.
Financial terms of the deal were not disclosed. The expected date of the acquisition closing was not provided and is subject to required regulatory approvals and other customary closing conditions.
Visa plans to integrate Verifi’s chargeback tools with Visa’s risk management services, including those delivered by CardinalCommerce (acquired in 2012) and CyberSource (acquired in 2010).
The acquisition comes on the heels of a steady flow of deals by the major card networks over the last few years to bulk up their abilities to detect fraud and reduce chargebacks in the e-commerce chancel. In March, Mastercard acquired Ethoca, a major rival to Verifi; and in 2017 Mastercard acquired Brighterion, an artificial intelligence software provider that specializes in fraud detection and marketing solutions. American Express acquired Accertify in 2010, another major competitor to Verifi.
Last year PayPal acquired Simility for $120 million to bolster its ability to detect online fraud. Simility deploys machine learning-powered tools to dynamically adapt with each transaction conducted on the PayPal network.