payment processing

Real-time passive authentication during payment processing to increase revenue and reduce losses

Payment processors partner with ThreatMetrix® to identify fraud at the point of sale and during merchant application. Our solutions instantly detect risky transactions before they enter the business and without adding friction to the digital experience.

When it comes to online payments, merchants need to deliver convenience and safety while complying with international regulations designed to give customers choice. Rapidly innovating payment models and mitigating fraud risk are key competitive differentiators.

ThreatMetrix enables payment processors to confidently accept more transactions. Our solutions offer strong customer authentication to verify people are who they claim to be on the web. This drives cost savings, supports compliance with regulatory mandates, and enables innovation of new payment methods to drive profitably growth of online channels.

With troves of stolen payment details readily available online, transactions need to be validated in a more sophisticated way. Dynamic information captured at the point of sale can provide a highly accurate way to recognize legitimate identities and pinpoint fraud without adding friction to the digital experience.

ThreatMetrix integrates with payment processor platforms to enhance merchant fraud management offerings and drive efficient processing. Our solutions instantly capture and cross-correlate hundreds of data points in real time to put merchants in control of customer trust decisions. Suspicious transactions can be flagged while legitimate customers get an efficient and safe brand experience. This helps improve conversion rates and manage risk while enabling continuous innovation of payment methods.


ThreatMetrix helps Ebates and our online merchant partners reduce first-time and recurring fraud incidents without impacting our customers’ online experiences.

— Kevin H. Johnson, President and CEO, Ebates

Evolving regulatory requirements (such as the Payment Services Directive (PSD2) issued in the European Union) are driving payment processors to adopt new methods of payment and develop supporting infrastructure. More generally, financial institutions of all types are under constant pressure to comply with regional mandates spanning a range of issues, from open banking to illegal transfer of funds to known criminal entities and embargoed nations.

With ThreatMetrix, payment processors can address changing regulatory requirements and identify illicit or location-sanctioned transactions. Our solutions can readily evolve with changing regional and global regulatory needs because they meet requirements for risk-based authentication and strong customer authentication (SCA). For example, location violations can be detected by revealing the characteristics of each user’s connection, including the use of any proxies, VPN and TOR connections. Access attempts from restricted locations can be identified and flagged in real time.


A large multinational bank uses ThreatMetrix to identify, in real time, customer access attempts from restricted locations. These transactions are marked as high risk by detecting the presence of proxies/VPNs to mask true location. The bank also identifies previously flagged cybercriminals using ThreatMetrix global shared intelligence.

Case Study: Multinational Bank Improves Customer Experience and Addresses OFAC Requirements

Cybercriminals can create full and convincing merchant accounts using stolen pieces of information that often pass security checks. But improved vetting can also mean that legitimate merchants can encounter increased friction. The goal should be to make fraud prevention better, not simply harder.

ThreatMetrix helps payment processors understand the legitimacy behind a merchant application to reduce fraud at the point of new merchant account creation. This avoids wasting time and resources on fraudulent accounts. Using dynamic data and global shared intelligence, the solution matches actual device information with stated user information. Our solutions detect identities used across different geographies, IP addresses, time zones, and languages. ThreatMetrix can also identify multiple accounts created from a single device or from computer-generated emails or names.


With the technology that ThreatMetrix has provided, OFX is able to more effectively detect, deter, prevent and investigate fraudulent and criminal activity.

— Deb Wood, USForex, Inc. (OFX)

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