IdentityMind, a digital security company, has introduced a new tool called Weave to help retailers and others verify a consumer’s identity by using information pulled from social networks, public sources, and a number of different sanctions lists. This information will help identify when someone is trying to purchase items for malicious use and to cut down on the number of improper credit card declines.
Online retailers and even a number of brick and mortar stores see false declines on credit cards. This occurs when the card issuer declines a charge because it appears suspicious. There are a number of different types of charges that can trigger this security mechanism. If the consumer has bought unusual items that do not fit their spending patterns or has made a very large purchase, the purchase may be flagged. Another false decline can come from using the card in a location far from home.
These false declines occur much more often than most think. In 2016, LexisNexis estimates that 58% of transactions declined by card issuers were legitimate purchases. In addition to embarrassing the card holder, each of these declined transactions cost the retailer money. According to Business Insider Intelligence, as much as $8.6 billion in sales were lost due to false declines.
By using Weave, IdentityMind hopes to cut down on these false positives while still preventing credit card fraud. In tests, Weave has proven successful by reducing the number of improper declines by as much as 95%.
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