Digital Transactions Authoritative, insightful and timely information for payments professionals
eFunds Corp. today announced it is buying ClearCommerce Corp., an e-commerce transaction gateway specializing in online fraud detection and prevention, for $19.4 million in cash. The deal is expected to close by March 31. By acquiring Austin, Texas-based ClearCommerce, eFunds picks up anti-fraud products and expertise for the card-not-present market, the Scottsdale, Ariz.-based processor of point-of-sale and ATM transactions says in a statement. The company adds that the deal brings to it more than 140 online merchant clients in seven countries. The combination will also give eFunds' client base a “comprehensive perspective on fraud detection,” drawing on both ClearCommerce's FraudDetect database and eFunds' DebitBureau database, the release says. ClearCommerce commands a 20% share of the $42 million market for online fraud management software and services, up from a zero share in 2000, according to Celent Communications Inc. Its primary competitors in this market are CyberSource Corp., Mountain View, Calif., and Retail Decisions PLC, a U.K.-based company with a U.S. unit based in Providence, R.I.
