MasterCard Launches ‘IQ Series’ to Fight Unnecessary Declines
Feb. 22, 2016
MasterCard, on Thursday, launched a pair of solutions it said will address unnecessary credit-card declines in e-commerce transactions. In an effort to reduce card-not-present fraud, merchants are employing strategies and solutions that could cause them to decline legitimate transactions. Whether it’s based in the antifraud solutions they employ or actions they may take or fail to take , unnecessary declines cost e- and m-commerce merchants millions. According to research quoted by MasterCard, the cost of declining good transactions in lost sales and loyalty total $118 billion, 13 times more than the $9 billion lost annually to card fraud. And, nearly one third of consumers who are falsely declined never shop with that merchant again.
To combat this, MasterCard launched two products it said will provide real-time visibility into cardholder spending at the issuer level. Authorization IQ provides issuers with a segmented spending history it can use to assess a current transaction. Assurance IQ paves the way for increased information between the merchant and issuer that enables MasterCard to generate a blended risk score.
“While the industry has relentlessly worked to reduce fraud, some of these efforts have resulted in an increase in transactions being needlessly declined,” said Ajay Bhalla, president of Enterprise Security Solutions at MasterCard. “Nobody likes being falsely accused of something. Our IQ products leverage technology and insights to deliver merchants and consumers a convenient, uninterrupted checkout experience.”
Reducing false positives generated during the fraud prevention process is so important to CNP merchants, the CNP Expo established a special session devoted entirely to this topic. Check out the entire agenda and register for the CNP Expo today.