Press Release Summary:
FICOÂ® Merchant Monitoring Solution helps merchant acquirers avoid losses in form of card fraud and collusion while also identifying possibility of financial compliance failure. Risks are identified using rules management and analytics, and advanced case management aids investigation of suspicious activity. Transaction settlement details are automatically captured each day, and acquirers can define their own metrics for daily calculations.
Original Press Release:
FICO Solution Improves Profitability and Limits Merchant-Related Risk for Banks and Acquirers
FICO Merchant Monitoring Solution can help quickly identify and understand the full spectrum of merchant fraud and risk
MINNEAPOLIS -- FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today unveiled FICO® Merchant Monitoring Solution, the fraud and risk management solution for merchant acquirers, those companies that process card transactions for merchants by enabling the necessary connections between the merchants, the card associations, and the issuing banks. The solution identifies fraud, financial, and compliance risk using powerful rules management and analytics, and gives acquirers advanced case management to investigate suspicious activity.
Merchant acquirers manage card authorizations for merchants, pay issuer fees on their behalf, and act as an intermediary between merchants and card issuers. In doing so, they take on risks associated with transactions until the transactions are final. This includes the risk that retailers are failing to comply with payment card association rules, and the risk of transaction fraud. The risks for acquirers are growing in the current economic environment, and changes in both the association rules and payment card regulatory frameworks introduce new dynamics to the acquiring landscape.
FICO Merchant Monitoring Solution helps merchant acquirers avoid losses from merchants in the form of card fraud and collusion, and identifies the possibility of financial compliance failure. In addition, FICO Merchant Monitoring Solution helps merchant acquirers prepare for the possibility that smaller merchants may declare bankruptcy or experience other unexpected financial events. By implementing FICO Merchant Monitoring Solution, acquirers can more profitably manage merchant relationships and mitigate known as well as emerging risks.
FICO Merchant Monitoring Solution is based on four components - the award-winning FICO® Blaze Advisor® business rules management system, case management, predictive analytics, and expert guidance from FICO Professional Services consultants. FICO Blaze Advisor enables acquirers to automatically process and send suspicious transactions to the case manager for prioritizing and review. Business users can easily create and modify rules without relying on IT.
Acquirers can define their own metrics for daily calculations such as total sales and historical performance. Transaction settlement details are automatically captured each day. Customizable analytics add sophistication in high-risk situations, such as when working with a new merchant.
"Through our experience over the last 20 years with card fraud, we have built an ideal solution for this segment of the market," said Doug Clare, vice president, fraud solutions at FICO. "Both merchants and acquirers will benefit from a better monitoring system, which protects all parties from fraud and improves compliance with industry rules."
"On a daily basis, the worldwide potential for fraudulent payment transactions is staggering," said David Fish, senior analyst, Mercator Advisory Group. "The merchant acquiring marketplace has long needed anti-fraud solutions like FICO Merchant Monitoring, so that merchant acquirers can identify and manage fraud proactively, the day it happens, without adversely impacting legitimate transactions."
FICO (NYSE:FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the FICO® Score -- the standard measure of consumer credit risk in the United States -- along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at www.fico.com. FICO: Make every decision count(TM).