TSYS has announced an agreement with Ethoca, a global provider of collaboration-based technology that enables card issuers and e-commerce merchants to stop card-not-present fraud, recover lost revenue and eliminate chargebacks.
Launched through this agreement, the TSYS Transaction Recovery Network, powered by Ethoca, provides near real-time notification of confirmed fraud that empowers issuers and online merchants to quickly recover lost revenue and eliminate the need for expensive and time-consuming chargeback processes.
“With the continued growth of e-commerce payments and the anticipated rise in card-not-present fraud, efficient collaboration between issuing banks and merchants is crucial to help mitigate risk and improve the cardholder experience,” said Andrew Mathieson, group executive at TSYS. “The TSYS Transaction Recovery Network enables a collaborative efficiency that reduces online fraud and operational expenses associated with chargebacks.”
The new chargeback mitigation solution is claimed to use a simple and effective process that allows speed to market and ease of integration for financial institutions. TSYS provides the connection to automatically deliver confirmed fraud data from the issuer to Ethoca in near real time. In turn, Ethoca passes confirmed cases of card fraud across a large, global merchant network to recover funds via transaction reversal or refund, negating the need for the issuer to initiate a chargeback. The process allows fraudulent transactions to be remedied quickly, saving time and costs, while creating a vastly improved experience for cardholders inconvenienced by fraud.
“AITE Group is predicting U.S. card issuer CNP losses will reach $6.4B by 2018, in large part due to the post-EMV shift in fraud from card present to card-not-present channels,” said Trevor Clarke, executive vice president of Issuer Relations and co-founder at Ethoca. “With TSYS’ Transaction Recovery Network, collaboration between card issuers and merchants will now be available to TSYS card issuers worldwide. Through this initiative, we’re executing on a shared vision: helping card issuers find more efficient and cardholder-friendly ways to combat the costly, damaging effects of fraud and chargebacks.”