Accertify fraud management platform acquisition will broaden fraud prevention services
Accertify fraud management platform acquisition will broaden fraud prevention services
American Express late yesterday announced it is acquiring Accertify, a US-based provider of solutions that help merchants combat fraudulent online and other card-not-present transactions for approximately $150 million (£92.2 million).
Launched in 2007, Accertify provides a hosted software application that offers additional levels of security for transactions over any of the major payment networks, including American Express, Visa, MasterCard, Discover, PayPal and other alternative payment methods. Accertify also offers merchants the option to outsource their end-to-end fraud management process.
The based fraud prevention provider, headquartered in Chicago, Illinois, said many of its customers have reduced in their fraud losses and customer complaints due to fraud by 50% or more.
American Express currently provides fraud prevention tools such as electronic verification, enhanced authorisation and charge verification to help merchants evaluate the potential risk of e-commerce and card-not-present transactions on its transactional network.
With the acquisition of Accertify, American Express said it will be able to broaden its fraud prevention services to merchants for transactions that take place on all networks. Accertify’s capabilities will be incremental and complementary to what American Express offers merchants today, according to the acquisition announcement.
“Merchants are interested in fraud tools that cover every aspect of the payment process; and we’re pleased that we will now be able to deliver an industry-leading solution to them,” said Bill Glenn, president of American Express Global Merchant Services. “While we already provide innovative fraud services for American Express transactions, merchants increasingly want single-source platforms to address all types of transactions, regardless of the payment brand. We understand merchants’ payment needs on a broader scale, and we’re building on our commitment to expand e-commerce solutions and value-added services. Accertify will enable us to further increase trust and confidence in the online payment space.”
Jeff Liesendahl, co-founder and chief executive officer of Accertify, will continue as president.
“Since forming Accertify, our goal has been to build a fraud prevention platform that can help transform the industry and accelerate e-commerce growth,” Liesendahl said. “Becoming part of American Express will enable us to build on our success by scaling our business, providing even more merchant benefits, and extending our global presence.”
The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2010. Upon closing, Accertify will operate as a wholly owned subsidiary of American Express.
