Kount, an eCommerce fraud prevention solution, announced its new Friendly Fraud Prevention Solution via a post to its corporate website. The new solution will feature the Visa Merchant Purchase Inquiry (VMPI). VMPI is a near real-time service from the VISA credit card company that helps merchants respond to disputes with card account holders by proving additional merchant information.
According to Kount CEO Brad Wiskirchen, The Friendly Fraud Prevention Solution is the first that will use VMPI to help identify both criminal and friendly fraud.
“Many businesses struggle with distinguishing friendly fraud from criminal fraud, limiting their ability to effectively fight chargebacks and deliver an optimal customer experience,” he said.“Through Kount’s Friendly Fraud Prevention Solution, digital businesses can now speed up case resolution and gain improved chargeback data to optimize their fraud prevention strategy.”
In the post, Kount states they believe the new solution will help merchants prevent chargebacks and also to find resolutions to disputed claims faster. It will use the company’s “Datasmart” advanced fraud data analytics to help merchants better classify fraud types so it is easier to distinguish between friendly fraud and legitimate disputes. In addition, the company believes the increased speed and additional data will help merchants to hold on to revenues from sales that may have otherwise been cancelled.
Finally, Kount’s post states that the Friendly Fraud Prevention Solution seeks to provide a better customer experience for credit card users. The post cites Krista Tedder, the Director of Payments at Javelin Research, who states that better communication between merchants and card holders can lead to better outcomes for everyone involved.
“Customer experience is key for both merchants and issuing banks, and friendly fraud poses a unique challenge, especially for those who operate in digital or remote channels,” Tedder said. “More effective information sharing between issuers and merchants can help consumers quickly identify purchases to prevent disputes while also providing issuers the insights they need to identify friendly fraud claims.”