The newly implemented solution is aimed at detecting fraudulent activity and protecting merchants from potential losses through means of enhanced payer verification, 24/7 fraud monitoring and chargeback challenges. Protect+ enables merchants to improve their payments success percentage, reducing costs associated with payer fraud management and protecting both the revenue and reputation of said merchants.
With fraud being considered a ‘top threat’ by 46% of UK businesses, and 79% looking to reduce the revenue lost due to it in the current economic conditions, GoCardless aims to offer with Protect+ an alternative to existing fraud prevention tools, which are found to be frustrating by merchants due to high costs (27%), the time required to administer (26%), and poor customer experience (21%).
Being the second ‘payment intelligence’ product from GoCardless, Protect+ combines the data of the transactions processed on its global payment network with merchants’ custom parameters which are set to match their risk appetite, thus detecting, and preventing three types of fraud:
Identity fraud, which refers to the usage of stolen or purchased bank account details, be they valid or invalid, by a fraudulent payer;
No intent to pay, which refers to a fraudulent payer who uses their own bank account with no intention of paying for the goods or services received;
And unfair chargebacks, which refers to a fraudulent payer who uses their own bank account and, after receival of the services or goods, submits a chargeback.
GoCardless representatives have stated in the company’s press release that the launch of Protect+ is aimed at helping merchants navigate the current macroeconomic climate, with 93% of merchants having revealed that business’ running costs increased since 2021, and a 91% actively seeking to cut costs. When it comes to improving their financial position in the following six months, most businesses are looking to renegotiate their terms with suppliers, 43% stating that this is ‘one of the first things’ they’d consider, followed by addressing the sources of lost revenue by finding ways to increase conversion, or reduce revenue lost to fraud (42%).
Protect+ is the second product from GoCardless’ 'payment intelligence' suite, a set of services using proprietary machine learning models to optimise the way companies collect and retain their bank payments, thus helping ensure an increased number of successful payments, lower failure rates, and less fraud. The first product, Success+, automatically optimises failed payment retries, helping businesses recover payments that fail initially.
In March 2022, the company launched another fraud prevention tool, Verified Mandates, a tool combining Open Banking’s Account Information Services (AIS) capabilities with Direct Debit to enable account verification at the point of sign-up.
GoCardless is a global direct bank payment solutions provider, enabling the collection of recurring and one-off payments directly from customers' bank accounts through means of Direct Debit and Open Banking. GoCardless processes over USD 30 billion in payments on a yearly basis across more than 30 countries, and is headquartered in the UK, with additional offices in Australia, France, and the United States.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now