In a strategic partnership aimed at fortifying online transaction security, Riskified, a renowned authority in ecommerce fraud and risk intelligence, has announced its integration with Plaid, the data network powering the digital financial landscape.
This partnership heralds a new era of confidence for online merchants, marketplaces, and trading platforms as it enables the approval of automatic clearing house (ACH) payments with unparalleled assurance, effectively shielding against fraud and the perils of insufficient funds.
Traditionally, ACH transactions were primarily used for direct deposits and routine debit withdrawals. However, they have now found expanded relevance in diverse ecommerce applications, spanning from cryptocurrency transactions to high-value purchases of precious metals, artwork, and gift cards through various marketplaces.
Notably, ACH transaction volumes surged by an impressive $1 trillion in 2022, marking the tenth consecutive year of growth, as revealed by statistics from the National Automated Clearinghouse Association (NACHA).
This collaborative integration between Riskified and Plaid serves to bolster Riskified’s existing ACH protection capabilities, shifting the onus of fraud liability and providing safeguards against ACH transactions resulting in ‘insufficient funds’ returns.
Riskified’s expertise in this area perfectly complements Plaid’s Signal offering, a transaction risk scoring engine that equips merchants with new data attributes to make more informed assessments regarding transaction return risks.
Riskified global channel partnerships vice president Kevin Sprake said: “While ACH transactions play a pivotal role in the payments landscape, ensuring the integrity of these transactions can be challenging.
“In collaborating with Plaid, Riskified’s existing ACH protection capability is further improved with enriched data and enhanced accuracy, equipping merchants with more confidence to embrace ACH payments. Riskified remains dedicated to pioneering innovative approaches to promote ecommerce growth.”
Riskified’s machine learning platform, developed over more than a decade, has consistently shielded numerous leading ecommerce enterprises from card-not-present fraud while simultaneously enhancing payment acceptance rates.
The platform’s precision is grounded in its ability to support bank payments, leveraging the extensive global merchant network curated by Riskified, which encompasses an impressive database of more than 2.5 billion historical transactions. This wealth of data enables Riskified to discern the critical data attributes underpinning each purchase accurately.
Plaid partnerships head Tamara Romanek said: “Innovation around risk and fraud assessment is rapidly expanding the use cases for ACH.
“Using Riskified’s guarantee solution for protection against fraud and insufficient funds allows merchants to confidently approve ACH payments for more use cases, while Plaid Signal provides greater intelligence to assess the risk of a transaction to unlock an instant ACH experience.”
With Riskified’s capabilities now integrated into the dynamic Plaid platform, the stage is set for a broader range of merchants to offer secure, seamless ACH transactions, contributing to the ever-expanding digital economy’s growth and reliability.
