Digital Transactions Authoritative, insightful and timely information for payments professionals
With the holiday shopping season about to start in earnest, payments companies are preparing their clients—merchants and issuers—for the increased volume of both legitimate and fraudulent transactions.
New checkout entrant Paze says with more than 125 million cards enrolled in the e-commerce payment option it anticipates reaching the goal of 150 million cards by year’s end, says Catherine Murchie, head of operations at Paze, which is operated by Early Warning Services LLC.
Scottsdale, Ariz.-based Early Warning announced Paze as a guest checkout payment method in 2023. Since then it’s lined up merchants and providers like GoDaddy Inc. to get its button placed on e-commerce sites.
Murchie says United Airlines Holdings Inc. is among the latest merchants to adopt the checkout service. Collectible retailer Fanatics Inc. will launch it soon, she says, and beauty and retailer Sephora will extend Paze to guest checkout for consumers who are not members of its loyalty program, having enabled Paze for these members in August, but likely after the holidays.
In addition to merchant adoption, Paze also is spending resources on awareness campaigns for consumers. It launched a series of TV ads during the World Series game Tuesday. Education is a vital piece of the plan for Paze, Murchie says. “We’re building out the participation on both sides, raising consumer awareness,” she says.
Consumers use Paze by clicking on the Paze checkout button on a merchant’s site. From there, a pop-up window appears to complete the payment portion of the e-commerce transaction. Some merchants may require account setup to make purchases. There is no fee to the merchant to adopt Paze.
In related news, processor Worldpay announced its FraudSight fraud-prevention service will automatically receive its services when accepting a card issued by Capital One, through a direct link between FraudSight and the bank’s risk engine, via the Direct Data Share tool from the card issuer.
“The unique part of this is our fraud decisioning is done pretransaction,” Sunny Thakkar, Worldpay head of global merchant fraud products, tells Digital Transactions News. To accomplish that, the service employs a real-time API code to send suspect transactions to Capital One for automated evaluation.
The distinction with this service is the issuer receives more transaction-related information from the merchant that the merchant could share directly, but that would entail the merchant establishing relationships with every credit and debit card issuer. Thakkar says the service eliminates that need. “It adds zero time,” he says. The shared data also not sensitive, he says.
The data sharing can enable more informed decisions by Capital One on transactions. Thakkar says merchants pay for FraudSight and have no fees to use the Capital One connection.
In the two months of Capital One’s use of FraudSight false positive declines dropped 40% on average based on the issuer’s internal results since launching the Direct Data Share program. In July, Cap One announced Stripe Inc. and Adyen would adopt the tool, too.
