Stripe has introduced an “enhanced issuer network,” which consists of partnerships with U.S. card issuers aimed at helping businesses combat fraud and improve authorization rates.
This network allows Stripe to provide secure access to transaction fraud scores through Radar, its fraud-prevention tool, using an encrypted connection with issuers such as Capital One and Discover. Radar leverages machine learning, trained on the vast amount of transactions processed by Stripe each year, to assign a risk score to each payment on a scale from zero to 99.
According to Stripe, providing issuers with access to Radar scores can minimize fraud, reduce checkout frustrations for consumers, and enhance payment authorization rates for businesses. Sarah Strauss, head of customer services and strategy at Capital One, stated, “This makes legitimate transactions more likely to be approved. The partnership has already generated hundreds of millions of dollars in recovered revenue for businesses.”
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