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  • Startup Company Offers Retailers Free Tool To Combat Fraudulent Online Transactions

    Online stores face a real issue with credit card fraud, as black markets are available to purchase and sell stolen credit card numbers such as those found during Target’shack in 2013. In 2014, stores suffered a $32 billion hit thanks to online commerce fraud.

    The big retailers – Wal-Mart and Amazon – may be employing teams and data-sifting technology to find these fraudulent transactions before they go through, but the problem is significant for smaller merchants. On top of that, the technology isn’t easy to use without expert help, and that talent is costly.

    However, Stripe is a $5 billion startup company that assist other companies and organizations – Girl Scouts, Lyft and Best Buy – take payment via their apps. It’s introducing the free tool Stripe Radar, which is designed to assist its customers to find and reject credit card fraud.

    Nonprofit organization Watsi crowdfunds medical care for people in developing nations – it’s only got two full-time engineers, and neither one can detect fraud easily. Within the first couple of months of using the Stripe Radar’s early version, the company rejected $40 million of fraudulent transactions.

    According to John Collison, Stripe co-founder and president, Stripe deals with millions of transactions on a daily basis, with half of Americans making a purchase from one of the company’s clients.

    Collison sad the lack of smart fraud detection tools means smaller companies tend to over correct on the possibility of fraud, reviewing every transaction or blocking international credit card transactions. Whatever the case may be,the retailer is costing themselves money and hindering their growth.These tactics, Collison says, are a blunt instrument.

    The Stripe Radar will immediately look for new patterns of fraud, flagging them – something humans can’t do easily. Collison said humans are prone to make mistakes when it comes to fraud and can’t change with the times as quick.

    Stripe, however, allows companies allover the world to take credit card payments. Companies that refuse to do business with international credit card payments can rest easy with the Stripe, as it offers protection.
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