FIS Launches Chargeback Indemnification Service for Crypto Brokers, Exchanges

FIS - IndemnificationFidelity National Information Services, aka FIS, has launched a new chargeback indemnification service designed for cryptocurrency brokers and exchanges. Worldpay’s Fraud Freedom service helps crypto brokers and exchanges optimize payment conversion and authorization rates while providing indemnification from Forter, the leading eCommerce fraud prevention provider.

Powered by Forter, the new AI-driven Fraud Freedom service helps crypto brokers and exchanges to deliver a secure, frictionless experience for their customers while minimizing fraudulent transactions, by identifying malicious actors throughout all points of the customer journey and prevent them from making fraudulent purchases, trades, or distributions of cryptocurrency. The highly automated solution leverages real-time learning from across Forter’s network to update its fraud models.

Shane Happach, EVP, Head of Global eCommerce, Worldpay Merchant Solutions, FIS, said: “The cryptocurrency market is growing rapidly, which is exciting to see, but the reality is that it is a high-risk sector for fraud that demands innovative solutions. By combining with Forter’s market-leading network- and AI-based fraud prevention system, FIS can help its cryptocurrency clients shift from a niche market to the mainstream while maintaining high standards of security.”

Michael Reitblat, CEO of Forter, commented: “Fraud protection in general, and especially in high-risk industries, must be highly adaptive and nimble. This can only be achieved when an AI-based system, which is able to learn from a vast number and diversity of transactions, is combined with proactive research and expert insights. Working with Worldpay to bring Fraud Freedom to the cryptocurrency market lets us leverage the strength of our system in a potent arena for fraud, which, in turn strengthens our system with a broader array of payments data insights with a continuous feedback loop.”

Worldpay was acquired by FIS in early 2019 in a cash and stock deal that values the company in $43 billion. FIS’s current shareholders will own 53 percent of the combined company, and Worldpay’s investor will hold the remaining 47 percent. Following the acquisition, both companies will have approximately $12.3 billion in pro forma 2018 annual revenue. According to a report by Boston Consultancy Group, the revenue in the payments industry is projected at $2.7 trillion by 2027. The combined entity would serve the high growth e-commerce industry, and when the deal is completed, it would become the biggest in the data processing and payments industry.