Fair Isaac Corporation (NYSE:FIC) and global transactions and payments processor TSYS (NYSE:TSS) announced today that they have extended their alliance to provide TSYS clients with Fair Isaac's next-generation fraud detection solution, Fraud Predictor with Merchant Profiles. Payment card issuers now have unprecedented capabilities to cut fraud losses and protect their credit and debit cardholders from fraudulent transactions.
TSYS currently processes more than 50 million payment card accounts worldwide utilizing the protection of Fair Isaac's Falcon(TM) Fraud Manager technology, the industry standard for fraud detection. Falcon protects more than 450 million worldwide. Under the new agreement, Fraud Predictor with Merchant Profiles will be integrated with TSYS CardGuard®, the card processor's comprehensive fraud services system that evaluates authorizations, payments, non-authorized transactions and account maintenance for fraud risk.
By integrating the predictive power of new merchant data with the proven analytics of Falcon, Fraud Predictor enables issuers to achieve an incremental boost in fraud detection and prevention of up to 50 percent over the performance of the Falcon score. Payment card issuers using TSYS services will have the option of utilizing either the Falcon or Fraud Predictor score for their fraud detection needs.
"TSYS is firmly committed to providing the payment card industry with the best fraud prevention choices available to help them excel in a challenging marketplace," said Andrew W. Marks, Group Executive at TSYS. "The power of Fair Isaac's transaction-based fraud solutions is market-proven, and we welcome the opportunity to add Fraud Predictor to our services, reinforcing our reputation as an innovative provider of payment services to the world's leading financial institutions."
"Our mutual clients have expressed a strong interest in Fraud Predictor's unprecedented capabilities to drastically reduce fraud losses and better protect their cardholders from fraud," said Tim Grace, vice president of Global Fraud Solutions at Fair Isaac. "This new initiative delivers access to those benefits directly through the TSYS platform as we continue to expand the availability and impact of this powerful new fraud detection solution."
Fair Isaac's Fraud Predictor with Merchant Profiles leverages the neural network models, profiling technology and cardholder information analysis of Falcon and a revealing new data source -- merchant data based on transaction and fraud history. The results are highly predictive fraud scores for even greater fraud detection.
Merchant profiles summarize transaction information and fraud history of each merchant, and are used by the neural network model to predict the points of sale/merchants that are more or less likely to experience fraud. The addition of merchant profile data allows the fraud score to reflect a broader view of a transaction -- the transaction risk and individual cardholder profiles used by Falcon as well as transaction and fraud history at the merchant level provided by Fraud Predictor -- and influence the fraud score accordingly to provide a significant performance lift in fraud detection. Merchant profiles will be updated and provided to TSYS on a weekly basis.
TSYS and Fair Isaac have been in a successful relationship for more than a decade, serving leading payment card issuers in North America and Europe. In addition to providing clients with access to Fair Isaac's real-time, transaction-based, predictive payment card fraud detection solutions through TSYS CardGuard, TSYS also provides quality account management solutions using Fair Isaac's TRIAD(TM) adaptive control system.