Stripe launches Enhanced Issuer Network
Stripe, a financial infrastructure platform for businesses, has launched Enhanced Issuer Network, a set of partnerships with major US card issuers.
Stripe provides secure access to transaction fraud scores from Stripe Radar, its fraud prevention solution, through an encrypted pathway with issuers including Capital One and Discover. Enhanced Issuer Network helps issuers decrease fraud, reduces checkout frustration for consumers, and increases payment authorization rates for businesses.
Issuers’ fraud models are based on a subset of transaction information. By contrast, Radar’s algorithms train on data from millions of global businesses and every layer of the financial stack, from checkout flow data to bank information. Even if a card is new to a specific business, there’s a 91% chance it’s been seen before on Stripe. When Radar fraud scores are used in tandem with the information issuers already have, issuers can increase the accuracy of their own authorization processes and confidently approve more legitimate transactions.
Enhanced Issuer Network enables issuers to incorporate Radar fraud scores into their own authorization tools. Capital One does this with its Enhanced Decisioning Data API.
“We’re thrilled to be a launch partner for Stripe’s Enhanced Issuer Network. With Capital One’s Enhanced Decisioning Data API, we can securely receive fraud scores from Stripe Radar that improve accuracy during the transaction authorization process,” said Sarah Strauss, head of customer services and strategy at Capital One. “In particular, this makes legitimate transactions more likely to be approved. The partnership has already resulted in hundreds of millions of dollars in recovered revenue for businesses.”