NEW YORK--(BUSINESS WIRE)--Forter, the leader in e-commerce fraud prevention, today announced an integration between Capital One’s Enhanced Decisioning Data product and Forter Trusted Authorization, one of the industry's first solutions that enables merchants to have a direct connection with issuing banks to share Forter’s fraud insights to increase authorization rates and decrease false declines.
While both merchants and issuing banks need to perform risk evaluations on every transaction, issuing banks are forced to make their authorization and fraud decisions with limited data around the legitimacy of these transactions. This can lead to false declines by issuers whereby some valid transactions are incorrectly suspected of fraud and not approved. According to research from AITE Group, the lost income to merchants and issuers resulting from false declines is predicted to be over $443 billion in 2021 – 75x larger than the actual fraud losses they face.
Integrating Forter Trusted Authorization with Capital One’s Enhanced Decisioning Data API ultimately creates value for both customers and the merchants from which they purchase. “It’s game-changing to be able to enhance authorization decisions in real-time as a result of our partnership with Forter, improving the accuracy of our decisions and leading to better overall experiences for our customers,” said Sarah Strauss, Head of Card Fraud at Capital One. “We are always looking for ways to better serve and protect our customers and in our initial work with Forter, we are seeing a reduction in false declines with no material increase in fraud, meaning our customers are shopping more seamlessly and more securely.”
Powered by Forter’s Global Merchant Network and advanced AI technology, Forter Trusted Authorization bridges the gap between merchants and issuing banks, allowing both to leverage Forter’s fraud insights to improve transaction authorization decisions. Based on initial merchant data, Forter’s fraud insights enable issuers to reduce declines due to suspicion of fraud by up to 50% – all while reducing fraud rates. This ultimately translates into a 1-3% increase in overall authorizations -- benefiting both merchants and issuers and improving the overall experience of the customer.
“With Forter Trusted Authorization, we are shining a light into what was once a black box process for merchants and an area of lost revenue for issuers,” said Michael Reitblat, Co-founder and CEO of Forter. “This solution is a giant step forward in our mission to create an ecosystem of trust in commerce – one where merchants, issuing banks, and consumers can work together to ensure the success of every legitimate transaction as seamlessly as possible.”
Forter is the leader in e-commerce fraud prevention, processing over $200 billion in online commerce transactions and protecting close to a billion consumers globally from credit card fraud, account takeover, identity theft, and more. The company’s identity-based fraud prevention solution detects fraudulent activity in real-time, throughout all online consumer experiences.
Forter’s integrated fraud prevention platform is powered by its rapidly growing Global Merchant Network, underpinned by predictive fraud research and modelling, and the ability for customers to tailor the platform for their specific needs. As a result, Forter is trusted by Fortune 500 companies, including Sephora, Nordstrom, Instacart, and Priceline to deliver exceptional accuracy, a smoother user experience, and elevated sales at a much lower cost. Forter was recently named the Leader in e-Commerce Fraud Prevention by Frost & Sullivan.
Forter is backed by over $200M of capital from top-tier VCs including Sequoia, Bessemer, Scale, and Salesforce.