Marqeta (NASDAQ:MQ) The global modern card issuing company today announced the launch of its RiskControl solution. It provides a complete product suite that helps customers to better manage their card programs, and take full control over risk management. RiskControl is designed to provide Marqeta’s customers with comprehensive risk, compliance, and fraud management capabilities across the cardholder lifecycle, allowing them to focus on their business growth. RiskControl is anchored by the introduction of a powerful new fraud mitigation solution – Real-Time Decisioning – enabling card programs to develop fine-tuned transaction controls and help limit payment fraud. Additionally, RiskControl includes newly enhanced versions of Marqeta’s Know Your Customer (KYC) and Disputes products, alongside its previously announced 3D Secure.
Global card payments increase annually. In 2020, there were more than 450 million card transactions. The threat of fraud is increasing due to the digital transformation of payments that has been fueled by the pandemic. Card issuers must offer next-level control to businesses in order to prevent fraud. Marqeta’s RiskControl solution has been built as a direct offering to help reduce the risk for its customers, enabling them to get ahead of fraud and streamline their risk and compliance programs without adding friction to the cardholder experience or slowing down card program growth.
“When we talk to our customers, the threat of payment fraud comes up consistently as one of their biggest business concerns. We’re seeing fraud increases worldwide weigh heavily on card issuers and processors, intensifying the need to offer highly effective risk and fraud management solutions that are tailored to individual cardholder experiences,”Randy Kern, Chief Technology Officer at Marqeta. “Marqeta’s deep expertise in issuing helps us provide a unique, end-to-end fraud and risk management solution that is specifically tailored to card-issuing transaction data. We’re putting the technology in our customers’ hands, unlocking their potential growth by proactively protecting them against the growing risk of fraud.”
Marqeta customers that use RiskControl are Yonder, Branch and Klarna. The core products in RiskControl – KYC, Real-Time Decisioning, 3D Secure, and Disputes – are designed to manage risk and compliance across the entire cardholder lifecycle, starting with customer onboarding and KYC, to payment transactions, through to the management of disputes.
- Know Your Customer (KYC), which provides identity verification capabilities, helps to block fraudsters and allows businesses to onboard cardholders confidently with minimal friction. Enhancements to Marqeta’s KYC solution can improve the pass rate to allow card programs to swiftly onboard more customers and reduce their time to value.
- Real-Time Decisioning empowers companies to develop fine-tuned controls for card transactions from hundreds of data attributes – including card network risk scores – to help manage payment fraud. Issuers have real-time control over their card payment transactions while ensuring they’re only accepted in accordance with a strict set of business rules. They can also monitor transactions and review them to improve their rules in response to external threats and business requirements. Real-Time decisioning was developed in partnership with Featurespace and has been available in beta for select customers. It is expected that it will be made generally available later in the year.
- Marqeta’s 3D Secure tool enables issuers to create tailored authentication experiences for online transactions. 3D Secure lets users leverage their business logic and data to reduce fraud, without creating unnecessary friction or cardholder droppingoff.
- Marqeta’s Disputes tool provides risk operations teams with a streamlined process for handling disputes and chargebacks, speeding up resolution time and improving the overall cardholder experience. Marqeta customers are able to use the Marqeta Dashboard as well as program management services to efficiently create, submit, manage, and resolve disputes at scale. Marqeta customers are currently able to access enhanced API capabilities in beta. They will be available more widely later this year.
Marqeta’s data-driven RiskControl offering enables users to take their risk management to the next level. Customers will be able to take full control over the card program through real-time insight and custom built controls. Risk control seeks to change the way risk management is done and provide a comprehensive solution that can be used by risk teams to manage card programs.
“Marqeta’s Real-Time Decisioning solution is an important tool in helping us to stay ahead of potential fraud concerns,” Yonder Chief Risk Officer Theso Jivajirajah. “We’ve already seen how Marqeta’s flexible controls have helped us fight against fraudulent transactions before they happen, giving our customers a better experience.”