SAN JOSE, Calif.--(BUSINESS WIRE)--Signifyd is partnering with Capital One to extend its Authorization Rate Optimization solution to the bank’s payments ecosystem, improving the shopping experience for consumers and increasing retailers’ revenue by ensuring a substantial increase in successful online transactions.
Capital One’s partnership with Signifyd, the market leader in fraud and abuse protection, will help increase authorization rates and minimize the number of orders that are incorrectly declined due to suspected fraud on Capital One credit cards. The result: increased revenue and customer lifetime value for retailers, stronger cardholder loyalty for Capital One and more secure online shopping for consumers.
Signifyd is extending its Authorization Rate Optimization directly into Capital One’s Enhanced Decisioning Data API to provide identity intelligence across the entire shopper journey, while striking a better balance between conversion and fraud protection. The move provides Capital One with enhanced data and fraud insights to help determine whether a transaction should be approved or declined at bank authorization. With instant insights from the Signifyd Commerce Network at checkout, Capital One can increase authorization rates and decrease false declines.
“We are so pleased to partner with Capital One to solve a strategic issue for the ecommerce world,” Signifyd CEO Raj Ramanand said. “The very largest ecommerce sites globally can work directly with issuers to optimize their auth rates, but what do other merchants do? They come to Signifyd because we can optimize payment acceptance through our deep product integrations across the financial ecosystem.”
Through the Capital One partnership and others, Signifyd is able to securely connect ecommerce transaction data from the world’s largest network of online retailers to card issuers, unlocking higher conversion rates and superior customer experience.
Enterprise retailers and card-issuing banks have been grappling with the challenge of false declines at the authorization stage since the dawn of ecommerce. The numbers tell the story:
- As many as one in eight ecommerce dollars are declined during payment authorization, according to The Economist.
- Losses due to false declines in the U.S. will grow to $443 billion in 2021, the Aite Group says, more money than will be lost to fraud itself.
- The Aite Group also reported that 62% of surveyed merchants said their false decline rates have increased in the last two years.
The false declines problem has become a vicious cycle in an era when fraud rings are becoming more sophisticated. Criminals have advanced their attacks to earlier stages of the online payment process while turning to automation to carry out those attacks. Banks and merchants have reacted by declining payment at the authorization stage at increasing rates.
The resulting negative customer experience may lead to losing a shopper for life and may reduce credit card loyalty. In fact, two-thirds of consumers said they would stop shopping at an online retailer if they had an order declined for no apparent reason, according to a Survata poll conducted for Signifyd.
“There is no reason merchants and banks should miss the opportunity to create seamless customer experiences at checkout,” said Signifyd General Manager, Payment Solutions Okan Ozaltin. “Working directly with issuing banks such as Capital One means Signifyd can offer the kind of ecommerce protection that makes life better for merchants and their loyal customers.”
Signifyd’s Authorization Rate Optimization solution has been consistently delivering positive results since it launched more than a year ago. While the solution allows issuers to authorize 1% to 3% more orders on average, Signifyd customers leveraging pre-authorization risk analysis have seen far greater improvement in authorization rates by reducing the percentage of fraudulent orders they send to banks for approval. Walmart Mexico, for instance, realized a double-digit percentage increase in approved transactions with Signifyd’s Commerce Protection Platform and its Authorization Rate Optimization solution.
“Since we implemented Signifyd’s solution we have seen an increase in conversion rates and customer satisfaction,” said Blas Caraballo, vice president of digital payments and financial services for Walmart Mexico.
The partnership with Capital One marks the latest integration of Signifyd’s Authorization Rate Optimization solution, which continues to roll out globally.