Why Kount is the best fraud prevention partner for PSPs
Payment service providers (PSPs) and gateways need fraud prevention that provides accurate digital identity decisions and effective fraud protection. But the best fraud prevention partner uses adaptive artificial intelligence (AI), machine learning, and networked data.
When combined, these elements assist in sophisticated decision-making crucial for PSPs that need to comply with regulations, create ease of use, or support complex business outcomes. So let’s take a closer look at what makes Kount the best fraud prevention partner for PSPs.
1. It was the first fraud solution to integrate fully into an acquiring bank authorization flow
Over a decade ago, Chase’s merchant services were looking for a fraud solution it could leverage across its entire merchant portfolio. At the time, this was a new idea, but that’s where Kount came in. As a result, its fraud control solution became the first to integrate with an acquiring bank authorization flow.
Today, Kount’s partnership with Chase has allowed the financial organization to optimize its customers’ transactions costs and fraud mitigation strategies. With Kount’s networked data and advanced AI, Chase authorized an additional $2.5 billion in card transactions, according to a 2020 IDC Vendor Spotlight.
“The volume of aggregated and de-identified payment data produced by our issuing and acquiring businesses is extremely useful in proactively identifying and minimizing fraud risk,” said Cindy Turner, J.P. Morgan’s Managing Director of Merchant Services. “We believe what makes J.P. Morgan different is the quality and quantity of trust we can quickly bring to payment environments.”
2. It works with the largest bank in the UK
Barclaycard introduced the U.K.’s first credit card in 1966 and has been working ever since to simplify payments for shoppers and businesses. In 2007, the company launched the region’s first contactless payments card. Overall, the banking organization processes nearly £1 in every £3 spent using credit and debit cards. In 2019, it processed over £272 billion in transactions globally.
In June 2020, Kount and Barclaycard announced a partnership to bring industry-leading payments fraud prevention to e-commerce businesses in the U.K. and Europe. The partnership allows businesses to reduce customer friction, accept more orders, and comply with PSD2 regulations. And it does so by providing strong risk analysis upfront, minimizing SCA step-up requirements.
“The Kount and Barclaycard Payments partnership is a mutually beneficial relationship. Barclaycard Payments gains access to Kount’s Identity Trust Global NetworkTM to bring insights and protection to its global merchants, especially those in Europe requiring PSD2 and SCA support,” said David Mattei, Senior Analyst at Aite Group. “Kount broadens its global visibility with a significant increase in U.K. card transactions. The real winners are merchants using Barclays Transact for advanced AI-driven fraud mitigation and prevention.”
3. It’s a purpose-built fraud solution for PSPs
With any new partnership, Kount’s goal is to help PSPs manage fraud across their entire merchant portfolios. That means giving merchants the flexibility to integrate and manage the solution fully. With that goal in mind, Kount has engaged in key partnerships with BlueSnap, Recurly, FreedomPay, P97, sticky.io, and Moneris, the largest payment service provider in Canada.
For example, Kount and BlueSnap brought AI-driven fraud prevention to more customers worldwide. And they helped a multi-million dollar company manage international payments and fraud. They also simplified its payment and fraud technology stack to accommodate global e-commerce and manage multiple payment methods and international currencies.
In 2016, Kount and Moneris announced a partnership to bolster Moneris’ fraud prevention offerings to merchants across Canada. Kount’s fraud prevention solution allows businesses large and small to set a risk-tolerance profile that best meets their needs. In addition, merchants can use the solution seamlessly with the Moneris gateway and receive assistance throughout the set-up and integration process.
In June 2020, the Moneris Online solution embedded Kount as a default option. It’s an all-in-one small business e-commerce solution that includes website creation with full payment integration for all card brands and fraud prevention tools.
“Every merchant we work with has unique fraud prevention needs. Some businesses have a high risk tolerance where others have a lower appetite for risk,” said Marta Rzeszowska, Director of Payments and Retail Solutions at Moneris. “Using artificial intelligence, machine learning, and other customizable data, Kount, in partnership with Moneris, is helping merchants minimize customer friction points and reduce their risk of fraud.”
4. It helps PSPs, gateways, and merchants establish identity trust at every interaction
Kount is an effective fraud prevention partner because it establishes identity trust — the level of risk of trust associated with each interaction — throughout the customer journey. PSPs that help merchants establish identity trust can also minimize fraud risk, reduce manual review rates, improve operational efficiencies, and reduce false positives. All of these help e-commerce businesses develop and deliver personalized user experiences.
“Digital commerce companies will not achieve adequate identity trust success relying on their internal data or other limited data sets,” says the IDC Vendor Spotlight. “Kount is well-positioned to help digital commerce organizations meet digital identity trust requirements through its real-time Identity Trust Global Network and its adaptive, AI-driven fraud solutions.”
And it’s not just IDC that thinks so. “Kount has, arguably, the strongest position of any fraud prevention vendor in the PSP market,” said Jordan McKee, 451 Research Director.
5. It allows PSPs to do what they do best
Working together allows Kount and PSPs to do what each does best, whether that’s seamlessly processing payments or reducing fraud while accepting more good orders.
“The marriage of the two, allowing us to each concentrate on what we do best, delivers an end result of a fully integrated, fantastic solution, rather than a piece-meal solution that is just not good enough,” said Kount CEO, Brad Wiskirchen.
Partnering with Kount means that PSPs, gateways, and acquiring banks can offer merchants industry-leading digital fraud prevention through Kount Central. The platform is available in three deployment models for Kount’s partners.
Each model comes with comprehensive, AI-driven fraud prevention through a one-time integration — no merchant IT hassles necessary. And all partners can offer additional value-added solutions for account takeover protection, dispute and chargeback management, advanced data analytics, and more.
In the end, partners can protect merchants from digital fraud with one integration. And they can grow revenue, attract new merchants, and stand out from the crowd themselves.