A new payment gateway called CyberSource has hit the Australian market and the vendor is looking for resellers. The gateway is designed to allow businesses to conduct foreign currency settlements and screen for fraudulent transactions.
According to CyberSource business development manager Peter Burgess: "US Internet sites Cybase and Amazon which use the product have reduced their online fraud to below 1 per cent."
He said another US Internet site, Beyond.com, in a single month experienced 40 per cent fraud before using the Information Verification System.
The IVS payment gateway uses an artificial intelligence database determining the accuracy of a person's identity and whether the address they give is where they say it is, he explained.
The software checks the information against 150 criteria and searches for electronic footprints such as addresses, locations, shipping instructions, and time of purchase. It then cross-references those details with other intelligence gathered from millions of transactions.
Ecom's CEO, Michelle Deaker, said it uses CyberSource's IVS on its Web site, giftvouchers.com.
Deaker said because Ecom accepts overseas transactions it's vital they are protected against fraud. It costs Ecom 60 cents per transaction, which she believes is a reasonable charge considering the risk.
Other payment gateways on the market, such as Address Verification System (AVS), don't search as thoroughly as CyberSource because they only verify addresses, Burgess said. If a thief has a stolen credit card number and the address, the AVS checks won't pick it up.