Capital One, Stripe, and Adyen have joined forces to create a free, open-source product aimed at reducing fraud losses and minimizing false declines for merchants.
Named Direct Data Share, this new API allows merchants and others involved in the payment process to share real-time transaction data for each purchase. With e-commerce fraud losses projected to reach $343 billion by 2027, according to Juniper Research, the collaborators believe that this initiative will be essential in combating the issue.
Jon Borman, Capital One’s head of fraud strategy, explained to TechCrunch: “If we see an IP address through Stripe that turns out to be fraudulent, we can now use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa.”
To date, the DDS initiative has enabled merchants to secure over $1 billion in spending that would have otherwise been lost to fraud and declines. Trevor Nies, global head of digital at Adyen, commented to TechCrunch that “Adyen’s merchants benefit from higher authorization rates and fewer chargebacks, just as Capital One’s cardholders benefit from fewer false positive declines and less fraud.”