Ethoca/FICO partnership aims to reduce CNP fraud losses

Collaboration-based technology services company Ethoca is partnering with FICO to allow participating FICO Falcon Fraud Manager card issuers to reduce chargebacks resulting from card-not-present(CNP) fraud.

In a release the companies said Ethoca Alerts and FICO’s Falcon software have combined to produce a CNP fraud solution that works across all stages of the life cycle – protection, prevention, alerting, investigation and recovery.

FICO will provide several options for card issuers to access Ethoca’s Global Collaboration Network. Those issuers relying on FICO Fraud Manager can directly integrate with Ethoca’s Global Collaboration Network. Falcon identifies potential fraud cases by advanced analytics, but Ethoca Alerts start once CNP fraud has been confirmed between a cardholder and their bank.

When fraud cases are confirmed they are marked in Falcon, with fraudulent CNP transactions alerting Ethoca to distribute a global alert to more than 5,000 merchant customers covering more than 194,000 merchant descriptors. The notification protects Ethoca’s merchant customers by allowing them to stop fulfillment of fraudulent orders while issuing refunds to cardholders. This process takes hours instead of weeks and eliminates chargebacks while speeding the dispute and fraud resolution process.

“Our partnership with FICO is yet another example of Ethoca’s commitment to making collaboration a no-brainer for the world’s leading card issuers and merchants,” Ethoca EVP of business development Trevor Clarke said. “FICO’s Falcon fraud software is trusted by card issuers looking to reduce fraud losses, mitigate repetitional risk and ensure good customers are minimally impacted by false declines.

“Ethoca shoes that vision, and adds a new layer of value – recovery – that can be delivered only through more effective collaboration between card issuers and merchants.”

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