CardLinx™ Task Force, Chaired by Deem, Releases Draft Standard for Fraud Prevention
The CardLinx Chameleon Standard Enables Detection of Return Fraud for Card-Linked Offers.
SAN FRANCISCO--(BUSINESS WIRE)--The CardLinx Association, the new association that facilitates the interoperability and growth of card-linked offers (CLOs), and Deem, a leading cloud commerce company delivering Commerce-as-a-Service (CaaS) to a large and diverse ecosystem of customers, today announced a new draft protocol, the CardLinx™ Chameleon Standard, for pro-actively combating fraud resulting from returns of CLO purchases. CLOs are generally much more secure than paper coupons, promotion codes and paper vouchers. CLOs, in which a customer’s use of a payment card automatically generates a discount, pose limited fraud risks. The principal known fraud scenario involves returns or chargebacks with the intent to retain discounts.
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The CardLinx™ Chameleon Standard will strengthen the card-linked industry by protecting merchants from offer misuse. The new standard addresses when a rebate reversal should occur and capabilities for automatic reversals. It also establishes data reporting requirements that will enable detection of fraud patterns and fraudsters in real time.
A task force, chaired by Deem, has completed a draft of the CardLinx™ Chameleon Standard, which is now available for member comment at www.cardlinx.org. In addition to Deem, other companies participating in the task force include MasterCard, Living Social, CardLytics, and ValPak/Cox Target Media.
The CardLinx™ Chameleon Standard will play a critical role in card-linked commerce at a time when transaction security has become increasingly important.
“The Chameleon Standard protocol ultimately protects all participants and underscores our commitment to a trusted marketplace for CLOs” said Patrick Grady, CEO of Deem. Deem is a founding member company of CardLinx.
“The draft standard is a great example of the tremendous co-operation among CardLinx members who worked together to establish a shared mechanism for fraud detection and prevention,” said CardLinx President and founding CEO, Silvio Tavares.
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About The CardLinx Association:
The CardLinx Association, cardlinx.org, is the leading association for the card-linked offer industry. The nonprofit group brings together leading merchants, digital publishers, payment networks, and banks—including MasterCard, Discover, Microsoft, Facebook and First Data, among others—to develop industry standards that eliminate friction for consumers and merchants.
CardLinx members, serve or represent over 6 million merchants, have issued over 1.9 billion payment cards, and serve consumers with over 200 million card-enabled accounts and over 700 million active daily users.
Deem, Inc. delivers Commerce-as-a-Service to businesses enabling them to save, sell and syndicate resulting in lower costs, increased revenue and enhanced customer loyalty. Over the past year, more than $6.5 billion of relevant commerce transactions occurred across Deem. Deem is headquartered in San Francisco, CA.