E-Commerce Merchants Can Get Card Transactions Guaranteed
Within three years merchants will no longer be liable for credit card fraud online, said Skye Spear, vice president of partnerships at Signifyd. Already firms like Signifyd, Forter and Riskified use fast, smart technology like real-time machine learning to review credit card orders coming into e-commerce operations, decide which orders are safe and guarantee those orders. If the order turns out to be fraud, the companies will reimburse the merchant.Signifyd’s charges for providing a guarantee range from about 50 to 100 basis points, or 1 percent of an order. In the future, Spear said, credit card companies could just tack that onto what they charge for their card, or retailers could simply contract directly with the guarantee providers.
“We’re seeing tremendous penetration in SMB mostly through partners,” Spear added. “We’re being embedded into Magento, [a large e-commerce platform] and you will see some more announcements about our being embedded in other e-commerce platforms.”
The company works through e-commerce platforms because going after SMB customers with a sales team just isn’t feasible.
Some of the largest internet retailers are using Signifyd, he added, and more are on the way.
“We want to be the BASF of the e-payment fraud world,” Spear explained, referring to the giant chemical company’s slogan, “We don’t make a lot of the products you buy. We make a lot of the products you buy better …” The company has partnered with American Express, Magento and, recently Salesforce.
Earlier this month Signifyd announced that it has joined the Salesforce Partner Program in support of Salesforce Commerce Cloud to help Commerce Cloud customers achieve protection from fraud as they grow their business across the United States and internationally.
“The world’s leading brands leverage Salesforce Commerce Cloud to deliver secure, seamless, personalized experiences for their customers across every channel,” said Signifyd’s CEO, Raj Ramanand in the company’s press release. “We take the same approach to fraud, eliminating it in-context, real-time and with machine learning built upon decades of domain expertise. Our financial guarantee ensures Commerce Cloud merchants have a fully predictable cost for fraud that declines over time while their order acceptance rates and margins increase.”