New Verification System to Speed ID Checks for Online Purchases
DALLAS, Sept. 8, 2003 – Now online retailers have another tool at their disposal to combat fraud and potentially save merchants thousands in lost revenues each year. ID Verification, a new service available to Paymentech merchants via a strategic alliance with ChexSystems, Inc., provides online, real-time customer authentication for electronic check transactions. ChexSystems is a subsidiary of eFunds Corp.
Paymentech is making the service available to merchant customers who process transactions via the Internet and telephone, where fraudulent transactions are most likely to occur. Paymentech processes more than 80 million electronic check items annually.
“It basically brings more security to the merchant, because it provides the ability to verify the same information that a merchant would check in a face-to-face purchase,” said Larry De Palma, Paymentech’s Director of Product Management for Electronic Transactions. “And it happens so quickly that it doesn’t delay the transaction.”
How it works
During a transaction, Paymentech compares customer’s information, including name, address and phone number, as well as the check’s routing and account numbers, to existing information in ChexSystems’ verification databases. Once the information is compared, the service sends back a code that immediately notifies the retailer if the information is valid – or not.
In addition to avoiding improper transactions, merchants using ID Verification have the added advantage of stopping attempts to open accounts with incorrect and outdated information. ID Verification also pinpoints information that is a potential fraud risk, like fake addresses, mail drops, nursing homes, hotels and prisons.
“This is a way for our card-not-present merchants to have more control over their transactions than ever before,” DePalma said. “It can help stop fraudulent usage before it ever becomes a problem.”
About eFunds
Headquartered in Scottsdale, Ariz., eFunds Corp. (Nasdaq: EFDS) is an industry leader with nearly 30 years of experience and expertise in electronic payments. eFunds provides electronic transaction software and processing, ATM solutions, risk management and global outsourcing solutions to financial institutions, electronic funds transfer networks, government agencies and retailers around the world. Committed to providing excellent customer service and award-winning products, eFunds enables its clients to reduce transaction and infrastructure costs, detect potential fraud and enhance relationships with their customers.
About Paymentech
Privately held Paymentech, L.P. processes more payment transactions than any other company in the U.S. – and more than half of all Internet transactions – for merchants accepting face-to-face, online, catalog and recurring payments. In 2002, Paymentech processed 4.2 billion transactions and $123 billion in bankcard sales in 14 currencies. This end-to-end processor for merchants of all sizes and industries was founded in 1985 and has more than 1,500 employees who office in the Dallas headquarters; New York; Salem, NH; Tampa, FL; Tempe, AZ; and other cities across the country. For more information, please visit www.paymentech.com.
CONTACT: Laura Lambeth
Paymentech Public Relations
214-849-3523
laura.lambeth@paymentech.com
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