I n fo r m at i o n She e t
TSYS Transaction Recovery Network , SM
Powered by Ethoca™
Reduce chargebacks and CNP fraud through global issuer-merchant collaboration
Over the last few years, the world has seen a huge rise in the popularity of online and mobile payments. Simultaneously, the U.S. has begun its migration to EMV/chip card technology that, based on historical evidence from Europe and other markets, will translate into dramatic increases in online and card-not-present (CNP) fraud. Together, these conditions could create a perfect storm that will result in increased fraud losses and chargeback expenses for both issuers and online merchants. Although merchants and issuers have fraud solutions in place, they can’t easily share intelligence needed to stop fraud. This leads to a dependence on the costly and inefficient chargeback process in order for both parties to recover losses. TSYS has partnered with Ethoca to offer a solution that bridges this gap, allowing merchants and issuers to securely share information about confirmed fraudulent transactions in near real-time. The Product: TSYS Transaction Recovery Network, powered by Ethoca, enables collaboration between issuing banks and merchants to reduce fraud, and recover lost revenue. Ethoca is a technology services company focused on solving the issues faced by issuers and online merchants relating to CNP fraud. They have developed the largest network enabling collaboration between card issuing banks and merchants to reduce both CNP fraud and customer disputes, as well as the costly impact of chargebacks. Working together, TSYS and Ethoca have joined forces and created the Transaction Recovery Network, a powerful, easy to implement, and cost-effective fraud and chargeback
mitigation solution that provides a near real-time confirmed fraud data feed between our clients and participating merchants.
The Value: There are currently thousands of merchants and hundreds of issuers of all sizes across the globe participating in this network. TSYS Transaction Recovery Network, powered by Ethoca gives you access to this growing base of merchants who take direct action on your confirmed fraud data. This means fewer chargebacks, reduced operational expense and a more positive customer experience. What’s more, for the first time you will be able to recover losses on issuer-liable (3D Secure) and low dollar transactions.
www.tsys.com
T SYS Transacti on Re c ov e ry N e t w ork , Pow e re d b y E t h o c a | Re d u c e c ha rg e ba c ks a n d C N P fra u d
HOW IT WORKS
CARD ISSUER
a sk a bout
Issuer marks confirmed fraud in CardGuard, then TSYS notifies Ethoca
Ethoca transmits an alert to the Merchant
Ethoca transmits alert outcome to the Issuer
Merchant acts on the alert
The Features: How it works: 1. TSYS provides a connection to automatically deliver confirmed fraud alerts from the issuer to Ethoca in real time. 2. Ethoca then passes confirmed cases of card fraud across their merchant network and seeks to recover funds for fraudulent transactions via transaction reversal or refund. 3. The merchant refund negates the need for the issuer to initiate a chargeback to recover the funds. This process allows fraudulent transactions to be recovered quickly and without operational and scheme costs associated
MERCHANT
with chargebacks. In many cases the merchant also agrees to refund 3-D Secure transactions where the liability rests with the issuer, preventing issuer loss when there are no chargeback rights. This also applies to small transactions that do not meet the threshold for chargebacks refunded through the process for example, small (less than $3.00) digital music purchases.
The Benefits: TSYS Transaction Recovery Network provides your organization with access to the largest network enabling collaboration between issuing banks and merchants — with thousands of merchants across five continents enrolled in this network, including seven of the ten top U.S.
Ask about our advanced 3D Secure solutions to add another level of fraud protection for CNP transactions; CA Risk Analytics and RSA Adaptive Authenication for e-Commerce. e-retailers, as well as the top global digital merchants and airlines. From an issuing standpoint, you will be joining a many of the top issuers in the U.S., U.K., Australia, Brazil, Canada, Israel, Ireland, the Netherlands, Singapore, and the Nordics, along with several others scheduled to join soon. Ethoca also has formal commercial relationships with the major card brands. With access to this vast network, issuers benefit from: • Lower claim and chargeback processing costs • Lower 3-D Secure fraud losses and write-offs • Faster and increased recovery • Better customer experience
Merchants take immediate action to stop the fraud and avoid chargebacks. Notification time is reduced from 3–6 weeks to hours or days.
WITH ETHOCA
NOW
40 MIN
45 MIN
1 HOUR
Bank flags card
Cardholder is contacted
Cardholder confirms fraud
Ethoca notifies the merchant and the fraud is stopped.
1 DAY
1 WEEK
5 WEEKS
6 WEEKS
Fraud Loss & Chargeback Costs Avoided — Weeks of Time Cut Out
to l ea r n m ore about TSYS Transaction Recovery Network, contact your TSYS Relationship Manager at +1.706.649.2307 or
[email protected]. You can also visit us at www.tsys.com.
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