Capital One is the 4th largest credit card issuer and 12th largest debit card issuer in the US. To reduce incidences in which its cardholders have their transactions falsely declined while shopping online, Capital One has opened its Direct Data Share API to Worldpay, the third largest merchant acquirer in the US.

Even when it would have been safe to approve a transaction, a lack of data leads to declines. These false positives for fraud contribute to cardholders forming a negative opinion of the issuer as well as the merchant.

When a Capital One cardholder makes a payment at a merchant that uses Worldpay’s FraudSight, an AI-powered fraud detection and prevention service, Capital One receives more data about the sale than what typically accompanies a payment card transaction over the Visa or Mastercard networks. That data, which includes email and IP addresses, serves as the cardholder’s digital fingerprint.

In Capital One’s first full month of usage, approvals of transactions that would previously have been declined amounted to a 31 basis point increase in purchase volume. There was only a negligible increase in fraudulent transactions.

Merchants pay a fee to participate in the FraudSight fraud prevention service. They are motivated to pay for that protection because merchants that sell online incur 100% of the financial liability for ecommerce fraud.

FraudSight is available in all 68 markets in which Worldpay acquires card payments but is active with Capital One only in the US. The issuer also operates in Canada and the UK.

Capital One is the first top 10 US credit card issuer to link directly to Worldpay.

Issuers do not pay a fee to participate in FraudSight, which is also available to merchants and third-party processors of any size. Worldpay and FIS make a similar service available through the fraud fighting service FIS provides to issuers that use its card account processing service. FIS owns 45% of Worldpay.

Additional steps to secure and facilitate ecommerce transactions using direct links to exchange data between issuers and acquirers are expected to include tokenization management and identity management.

Worldpay began operating as an independent company in February of this year after private equity firm GTCR closed a deal to purchase 55% of the company from FIS.

Fiserv, the largest merchant acquirer in the US based on transactions processed, offers issuers a service similar to FraudSight.

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