Cardinal’s payments platform analyzes 400 points of data in each online transaction to reduce fraud. “The acquisition will enable more secure, seamless payments, whether made through a browser, mobile app or connected device, and will help Visa’s clients and merchant partners accelerate digital commerce,” Visa said in a statement. Visa already provides Cardinal’s services to merchants and acquirers through its CyberSource merchant and acquirer unit. Visa says its global business will help Cardinal expand its international client roster.
“By helping merchants, acquirers and issuers better distinguish between good and bad transactions, Visa is in an even better position to strengthen consumer trust in digital payments, help merchants grow their businesses and accelerate innovation in commerce,” says Mark Nelsen, senior vice president of risk and authentication products at Visa. CardinalCommerce aims to improve communication about consumers between online retailers and banks, thus making it easier to authorize online purchases.
CEO Mike Keresman said in July that Cardinal holds 63 patents, all proprietary inventions that the company developed. Among retailer clients, he says, there often is a divide between what they know about a consumer and what a financial institution knows. Retailers typically have one set of data about a customer, while banks have their own data. Cardinal’s payments services marry those data sets so that online retailers and banks can have more confidence that online transactions are legitimate.
Cardinal’s payments platform analyzes 400 points of data at each transaction to reduce fraud. Keresman says the company monitors 750,000 merchant identification numbers, which are what banks and other financial institutions use to identify businesses; plus bank identification numbers, which are the first six numbers of a credit card used to identify the issuing financial institution. Together these ID numbers help to verify a customer’s identity when they make an online purchase.