GoCardless has rolled out its open banking-powered Verified Mandates tool in France to help stop payment fraud before it happens.
More than half (55 per cent) of French merchants that use recurring revenue business models consider payment fraud a top threat facing their business. Yet 53 per cent still provide goods or services before confirming if a customer’s bank information is authentic and true.
The GoCardless Verified Mandates tool combines the account information services (AIS) capabilities of open banking with bank debit to stop the type of fraud when ‘customers’ intentionally try to receive goods or services from merchants without paying for them.
Verified Mandates, which GoCardless introduced in the UK earlier this year, followed by Germany in June and the US, operates a three-step process. Firstly, a customer in a merchant’s checkout flow completes a standard bank debit mandate creation form. Then they’ll be prompted to choose their bank, log into their online banking platform using their usual method, and authorise the setup of their direct debit mandate. Finally, the merchant receives instant confirmation of the successful verification and the customer can checkout.
Alexandra Chiaramonti, general manager of Continental Europe, said: “Payment fraud is a prevalent issue for merchants, but new technology means you can limit your exposure without reducing conversion or adding a ton of third parties to your supplier roster.
“Verified Mandates, which uses the power of open banking, allows you to authentic your payers as part of the payment set-up flow. This means you can protect your revenue without adding extra friction for your customers.”
GoCardless, which raised its Series G funding round to accelerate its growth in the space in February, also recently announced the acquisition of Nordigen, the open banking data provider, to combine broad open banking connectivity with bank payment expertise.
The company is headquartered in the UK, with additional offices in Australia, France, Germany and the US.
Image and article originally from thefintechtimes.com. Read the original article here.