August 24, 2016
PayCertify Guarantees against Friendly Fraud in Call-Center Transactions
Nov. 5, 2015
A company that had its roots as a credit-card processing provider to the hotel industry has rebranded under the name PayCertify with a service that protects call-center and other non-e-commerce card-not-present transactions from fraud. PayCertify began its life as a service for hotel owners protecting them from no-shows that consumers would then charge back. In the process of developing a product that would validate that the credit card used belonged to the person who made the reservation, the company realized it was applicable to the card-not-present space in general and integrating it would be easier in other environments, according to Chase Harmer, president of PayCertify.
“There’s a much larger problem with a much less burdensome barrier to entry,” Harmer said. “We can integrate with gateways, CRM systems and anything else people want to use. Ultimately we have a great product, but the integration on the hotel side was difficult due to the systems they use.”
PayCertify, which recently rebranded itself from PayVerify, targets friendly fraud in the call-center and mail order environments, which, Harmer said, account for nearly all chargebacks experienced by these kind of transactions. During the transaction, PayCertify scrapes all the contact information including email and mobile number. The customer receives an email asking them to verify the purchase and pings their phone with a 6-digit code. When the customer has authenticated the purchase by reading back the code to the agent, Harmer said the customer is now tied 100 percent to that transaction. And, PayCertify guarantees merchants will receive the funds from consumers who have been authenticated in this way.
“There is nothing being done like this in the MOTO space,” Harmer noted. “It’s a huge space but sometimes it seems like the redheaded stepchild of CNP when compared to e-commerce and m-commerce. We have an opportunity to be a powerhouse in the space.”