ST. PETERSBURG, Fla./TORONTO–PSCU said it has entered into a partnership with Ethoca, a leading provider of collaboration-based technology solutions for card issuers and merchants, to help reduce losses from card not present (CNP) fraud.
In making the announcement, PSCU pointed to data from the Ecommerce Foundation that global B2C ecommerce turnover grew from $2.3 trillion in 2015 to $2.7 trillion in 2016, and that the pace continues to accelerate.
“Coupled with the increasing shift in fraud to the CNP channel in the wake of the U.S. EMV migration, it is not surprising that all card issuers, including credit unions, are increasingly concerned about the cost to recover CNP fraud losses,” PSCU said. “Aite Group estimates these losses are on track to rise from $2.9 billion in 2014 to $6.4 billion in 2018.”
PSCU said it turned to Ethoca for an alternative to recover these losses including low value transaction write-offs and 3-D Secure transactions.
With Ethoca Alerts, cases of confirmed fraud reported by PSCU owner credit unions are sent to Ethoca for immediate distribution to more than 5,200 leading ecommerce merchants worldwide, covering more than 205,000 merchant descriptors, the company said. These merchants act on alerts immediately by stopping the fulfillment of fraudulent orders and issuing cardholders a refund. This faster, more efficient process takes just hours instead of weeks, preventing criminals from monetizing their crimes. Credit unions can now expedite the recovery of fraud losses all while ensuring a better experience for cardholders.
“PSCU engaged in a successful pilot of the Ethoca Alerts service and determined there was significant value and cost avoidance for our members,” said Jack Lynch, PSCU SVP and Chief Risk Officer. “As card not present fraud continues to rise, PSCU looks to the future and a continuing partnership to capitalize on the long-term value that comes from participating in Ethoca¹s global collaboration network."