Signifyd has teamed up with financial technology leader Worldpay from FIS to provide customers of the world’s largest payment processor with commerce protection that maximizes merchants’ conversion and eliminates the financial liability for fraud.
FIS selected Signifyd to power its new Guaranteed Payments solution for its more than 20,000 customers worldwide. Signifyd’s technology has helped thousands of merchants to prevent chargebacks, dramatically reduce false declines and eliminate manual review, while increasing the number of their approved orders by an average of 5% to 9%.
“FIS’s selection of Guaranteed Payments powered by Signifyd as a fraud solution for its customers is another demonstration of the market’s confidence in Signifyd’s commerce protection technology and expertise,” Signifyd CEO and co-founder Raj Ramanand said. “This partnership means that thousands of additional merchants will be able to immediately unlock revenue that they’ve been leaving behind with outdated payment fraud protection solutions.”
Guaranteed Payments powered by Signifyd combines powerful transaction intelligence
The powerful partnership is tackling one of ecommerce’s most nettlesome balancing acts — providing seamless buying journeys while protecting the enterprise from fraud. While fraud accounts for about 1% of online transactions, merchants routinely reject more than 10% of orders in an attempt to avoid fraud.
“Guaranteed Payments brings together two powerful sources of transaction intelligence – the Worldpay data stream produced from processing 40 billion orders annually and the Signifyd Commerce Network of thousands of merchants worldwide,” Vicky Bindra, chief product officer at FIS, said in an FIS news release announcing the strategic partnership. “Together, we have a powerful solution currently found nowhere else in the market that has the unique ability to combine fraud protection with increased approvals to enhance payment optimization and the overall user experience.”
The powerful paring comes at a time when payments and the technology to power them are undergoing a transformation. With the cost of customer acquisition and fulfillment skyrocketing, forward-thinking merchants are seizing on increasing revenue through more intelligent and customer-friendly payment processes.
FIS Senior Vice President of Growth Solution Product Nicole Jass laid out the combined power of Signifyd and FIS in an earlier conversation.
A first-in-the-industry solution to increase and guarantee approvals
“We talk to customers and the top two pain points are one, higher approval rates. And two, ‘I don’t have capital or authorization to build or integrate anything,’” Jass said. “With Guaranteed Payments, it will be integrated into our payments stack. We’re literally talking to our customers about turning on higher approvals and guaranteed approvals, which I believe is the first in the industry.”
Jass expounded on the benefits to brands and merchants in the video interview below.
The problem the Signifyd and Worldpay from FIS partnership solves is one that has tormented brands and retailers since the dawn of ecommerce.
The fear of fraud sets off a downward spiral. Poor transaction decisions that allow fraudulent orders through lead to chargebacks (the rightful credit-card holder requesting their money back through their credit card issuer) that directly cost merchants $40 billion a year. Add to that the money spent to acquire customers and the processing fees that go along with the fraudulent orders and the true cost of fraud is nearly twice the direct cost.
Worse yet, the threat of fraud and its consequences prompts merchants to decline good orders to avoid chargebacks and to keep their fraud rates low. False declines cost merchants $443 billion a year, plus additional future revenue lost to declined customers abandoning merchants that refused their orders.
Machine learning and transaction data drive Guaranteed Payments powered by Signifyd
Finally, to avoid fraud, merchants layer manual reviews onto their systems. Such reviews slow orders’ progress and inject human error into the review equation.
Guaranteed Payments powered by Signifyd avoids those detrimental legacy payment practices by relying on machine learning and a vast amount of transaction intelligence to understand the identity and intent behind each order. Guaranteed Payments relies on transaction intelligence from Signifyd’s Commerce Network, a network of thousands of merchants worldwide.
That intelligence, coupled with dynamic machine learning models, means that Signifyd can sort legitimate from fraudulent orders instantly. Guaranteed Payments powered by Signifyd provides merchants with the confidence to automate their order flow because it backs its decisions with a financial guarantee on approved orders.
Guaranteed Payments is fully integrated into the Worldpay from FIS platform. Once deployed the solution begins to provide protection and revenue optimization immediately. The solution is available today.
Feature photo by Getty Images.
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