FlexPay launches in Beta with a number of Clients

FlexPay, our AI driven enhanced payment gateway, has officially launched as a test beta.

FlexPay aims to tackle the vast problem of false positives associated with Card Not Present (CNP) transactions by using AI and machine learning algorithms to recover declines.

While Card Present (CP) transactions decline 2%-4% across global credit card networks, Card Not Present (CNP) transactions decline as high as 50%.

This represents $118B of transactions flagged under “suspicion of fraud” compared to $9B of actual fraud.  The problem originates primarily from the conservative approval rules used by Card Issuing Banks (CIB). These rules are based on outdated ISO standards, leading to transactions being flagged as fraudulent when in fact they are legitimate. We term this phenomenon the False Decline Problem.  In fact, many merchants are unaware of the magnitude of this issue and simply absorb it as a normal cost, while other merchants use expensive and ineffective methods to recover declines.

Armed with data collected through our vast experience in merchant processing and our long-term relationships with card issuing and acquiring banks, FlexPay’s AI intelligently determine the best decline salvage strategies to use. This is especially significant for those vendors who rely on CNP transactions for recurring monthly revenue. As part of the beta launch, FlexPay has on boarded 15 direct mail brands along with one major nutraceutical client.

The nutraceutical client, who has over 15 product lines, customers all over the world, and anexplosively successful marqué product, processes over $15 million each month in credit card transactions. The vast preponderance of their business is sold on a subscription basis, and they are experiencing an average decline rate of 20% on their monthly re-bills which FlexPay will solve for them.

We will update again on the results of these first clients in the next quarter.

By | 2018-02-16T19:46:45+00:00 March 17th, 2017|Uncategorized|0 Comments

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