Fraugster | August 02, 2022
Fraugster, an AI payment intelligence company, together with Worldline, a global leader in secure payments and trusted transactions, has confidently enabled travel merchants to weather the storm of the Covid-19 pandemic with its Chargeback Protection Solution. The solution eliminates chargeback losses for merchants by taking full liability for fraudulent transactions. At the same time, advanced AI trained on global payment data makes more accurate decisions to boost approval rates. Innovations in machine learning and artificial intelligence (AI) allow merchants to go-live without historical data by leveraging a new deep learning model.
With the outbreak of Covid-19, global travel was grounded. This caused mass cancellations and a scramble for refunds, but also created new opportunities for fraudsters to strike overburdened travel operators (hotels, airlines and OTAs), and take advantage of weak points in the system. In addition, there was a surge in so-called "angry chargebacks" where customers claim not to have authorised a transaction, usually in response to being frustrated by a cancellation or booking change. Covid-19 fraud patterns and consumer payment behaviour were significantly different to those pre-pandemic. Similarly, data inconsistencies limited the ability to identify and prevent certain types of fraud attacks like last minute cancellations on short term bookings. Chargeback rates jumped to over 3%, versus a baseline of under 0.5% in normal circumstances.
"Iberostar experienced a massive increase in fraud pressure during the pandemic. We were pleased that partners Fraugster and Worldline were able to act so quickly to design a new AI model specifically for us. In a few short months we reduced the Chargeback rate from 2.76% to 0.07%, which was a fantastic achievement,"
-Ferran Llompart, Corporate Treasury Director, Iberostar
Additional factors make chargeback protection more relevant than ever. The first is that the total cost of managing chargebacks has risen to nearly 3x of the original transaction value, according to a Fraugster analysis. For verticals like travel, where average order values are in excess of $750, this implies a total cost of over $2000 per fraudulent transaction.
Secondly, 80% of online merchants are reporting an increase in first party fraud (also referred to as "friendly fraud") where credit card credentials are intentionally or mistakenly abused. This trend is particularly acute in online gaming environments. These chargebacks are very difficult to prevent or mitigate and are costing companies margin, with limited recourse to recovering chargeback losses.
Together these trends are increasing merchants' exposure to chargeback liability and are driving up the total costs related to chargebacks. With Fraugster's Chargeback Protection solution merchants are able to significantly reduce the costs attributable to managing chargebacks, plus chargeback losses and fees, with little to no integration effort.
"Fraugster's approach to addressing chargebacks is to use a combination of machine learning and behavioral science to build a sharper picture of the transaction in question. This means merchants can provide a more seamless buying experience for legitimate customers while also preventing fraudulent transactions from getting through - this includes transactions that may turn into chargeback fraud later on, We are pleased that global brands have increased their revenue of between 5-16% since adopting Fraugster's Chargeback Protection solution product and report a steadier and more predictable financial coverage for chargebacks and bottom line impacts."
-Christian Mangold, CEO of Fraugster.
Fraugster is a Berlin based payment intelligence company. Fraugster enables the world's leading merchants, global payment companies like Worldline and Ratepay to intelligently manage the impact of fraud to minimize the costs of fraud, maximize revenue and improve customer experience. Fraugster has developed one of the most accurate AI compliance, risk and fraud management and revenue uplift platforms in the market and is backed by leading deeptech investors including Earlybird, Speedinvest and CommerzVentures. Further information can be found at https://www.fraugster.com/
TRAVEL TECHNOLOGY,BUSINESS TRAVEL
Sabre | June 21, 2022
On June 20, Sabre, a leading software and technology provider in the travel industry, announced an enhanced partnership with Cathay Pacific Airways. This partnership will allow Sabre-connected travel agencies across the world to access dynamic New Distribution Capability (NDC) content from Cathay Pacific through the Sabre travel marketplace.
Sabre gets extra traction on its NDC roadmap while creating additional modern airline retaining opportunities for Cathay Pacific. Additionally, the partnership Sabre-connected agencies to shop, book and service Cathay Pacific content to create more personalized experiences for the end traveler. At the beginning of this year, Cathay Pacific chose Sabre’s Fares Manager and Fares Optimizer solutions to achieve strategic pricing and intelligent offer creation.
"As we move further into recovery, it's vital that we are able to create more differentiated content that is reflective of travelers' wants and needs today and tomorrow, Having created that content, we need to make sure that as many travelers as possible have access to it, whether through direct or indirect channels. That's why we're delighted to be joining Sabre's Beyond NDC family at this key moment for the travel industry."
-Cathay Pacific General Manager Sales and Distribution Martin Xu. "
NDC is more important than ever as the travel industry seeks to capture the tailwinds of recovery, and 2022 is gearing up to be a key year for our NDC efforts," said Kathy Morgan, Vice President, Channel Delivery, Sabre Travel Solutions. "A critical enabler in creating a more dynamic distribution environment where it is easier to adapt to changing marketing conditions, NDC is a win-win-win for the airline, agency and traveler, so we're thrilled to have Cathay Pacific join us as we continue to drive our long-term Beyond NDC retailing and distribution vision forward.
Sabre is set to advance its capabilities as the agreement builds on a busy NDC roadmap. Cathay Pacific resumed flying to more destinations following changes to some travel curbs in Hong Kong.
TRAVEL TECHNOLOGY,COMMERCIAL TRAVEL
Mastercard | June 24, 2022
Mastercard expanded its Mastercard Travel and Lifestyle Services platform. New partnerships that focus on smooth travel experiences and memorable moments for its cardholders are at the crux of this expansion. New features include WhatsApp servicing, COVID alerts and offers like lounge access when flights are delayed are offered to customers.
“Many of us eagerly await the chance to satisfy our love for travel, but it can be stressful to plan a trip with so many uncertainties about what traveling will look like, At Mastercard, we’re here to support every step of the journey — from planning to booking to transportation to experiences in destination — so travelers can focus on what really matters. After two years of disruptions, we know that time with our loved ones is truly priceless.”
-Mastercard’s Stephanie Meltzer-Paul, executive vice president, Global Loyalty
In addition to providing direct service to cardholders, Mastercard assists governments, businesses, and brands in understanding changing consumer patterns and preferences to build and test programs and incentives. Mastercard services give customers everything they need to welcome back travelers, from market analysis and insights to marketing solutions and consumer engagement strategies. The Tourism Innovation Hub in Spain, for example, was recently established to develop customized goods and solutions to enable a sustainable, inclusive return to travel through innovation, research, and collaboration throughout the ecosystem.
Mastercard Travel & Lifestyle Services is a travel planning and booking portal that provides World and World Elite cards with unique guarantees, amenities, and upgrades, as well as 24/7 concierge and premium offers and entertainment from major travel brands. With the experience economy in full swing, travelers can satisfy their wanderlust with customized city tours informed by local experts and member favorites via the Inspiration Module. The program now features WhatsApp servicing, which is presently accessible in certain geographies2 throughout the world and will be available globally by the end of the year, where members can message Lifestyle Managers regarding travel and concierge requirements from their phone.
Cardholders benefit from the Lowest Hotel Rate Guarantee, and the Mastercard Hotel Stay Guarantee, as well as free nights and preferential treatment at over 4,000 4- and 5-star properties worldwide. In addition, travelers can book once-in-a-lifetime Priceless Experiences while in location, such as a dream vacation to London and Paris with Michelin-starred restaurants, luxury glamping in Sweden's Blekinge archipelago, or a visit to the top of New York City's One World Observatory.
Premier Programs and New Travel Partnerships
In addition to the preferred experience of Mastercard Travel & Lifestyle Services, Mastercard has formed several new alliances to provide perks that reduce travel stress and promote more enjoyable experiences.
Convenience: Cardholders enjoy access to a global network of over 1,100 airport lounges for delayed flights or relaxing in quiet. Mastercard Flight Delay Pass, currently accessible in select locations worldwide, provides complimentary lounge access on eligible delayed flights. FastTrack in Europe was also recently established, as was Mastercard Travel Pass in Canada, providing a hassle-free airport experience.
Connection: Starting in the Asia Pacific and expanding to additional regions later this year, select cardholders now have access to complimentary worldwide roaming data packs for use in more than 200 countries, and a 15% Mastercard discount on top-ups via Flexiroam.
Care: Through Sitata, cardholders can opt-in to get real-time notifications and the most recent COVID limits and requirements, including testing locations and cost.
Convenience: The new mycardbenefits.com is a digital insurance platform that allows Mastercard cardholders to instantly access – and smoothly submit – claims for the insurances contained on their card, such as vehicle rental, and lost luggage replacement, mobile phone, and trip cancellation.
Cash Rewards: Use Mastercard Travel Rewards to shop and earn cash rewards at hundreds of prestigious retailers in 19 destinations, and thousands of online deals for unique save