Meanwhile, PayPal acquires mobile payments firm Paydient.
A new IP geolocation tool from CyberSource identifies the type of Internet service used by buyers as well as their location by country, state and city, CyberSource says. The company has also launched a European debit card fraud prevention service.
A new Internet protocol geolocation tool from CyberSource Corp., a provider of payment processing and risk management services, lets retailers identify the type of Internet service used by buyers as well as details on the buyer’s geographic location, including country, state and city, CyberSource says.
“This is the next step in order evaluation,” says Kirsten Fry-Sanchez, vice president of product management. “CyberSource customers have told us that in many instances, they need as much order specificity as possible to maximize their conversion rates and minimize their fraud.”
The new tool, which CyberSource is providing at no extra charge to users of its Decision Manager risk management service, provides more details on both the IP address of the computer a buyer is using to purchase a product online and the physical address of the customer’s location.
Until now, the primary function of the Decision Manager service was to provide a risk score from 0 to 99, the higher the number the greater the risk, a spokesman says. A criminal trying to make an online purchase from a computer in Europe with a credit card stolen from a consumer based in Chicago, for example, would result in a high risk score. “We would be able to tell the retailer of a geolocation mismatch when comparing a physical address to an IP address, but we weren’t able to give exact specifics,” says Victor Dolcourt, senior product manager.
But under new contract terms with its third-party geolocation service partner, CyberSource can now provide more details on both the computer’s IP address and the country, state and city location of the person attempting to make a purchase. It can also detect the type of Internet facility being used, such as DSL or cable, which are considered less risky than satellite services that are difficult to identify, CyberSource says.
The system is designed to enable retailers to confirm additional transactional data automatically without having to resort to manual review, providing greater opportunity to process legitimate transactions as well as block fraudulent ones, the company says. The system allows retailers to create customized business rules that, for example, would send to manual review only transactions from certain countries at a certain level of transaction value. “We put this service in mostly to help retailers convert more orders,” Dolcourt says.
In a related development, CyberSource has enhanced its Decision Manager service to provide fraud detection for online debit purchases originating in five European countries-Austria, Germany, Holland, Spain and the U.K.