SOURCE: Ethoca

November 11, 2008 09:00 ET

2Checkout.com Joins Global Fraud-Fighting Community Powered by Ethoca to Extend State-of-the-Art Fraud Management to Its 30,000 Active Merchants

2Checkout.com Leverages Integrated Solution From Ethoca and 41st Parameter to Prevent Merchant Chargebacks Related to Fraud

TORONTO--(Marketwire - November 11, 2008) -


News Facts:

  • Ethoca, the leader in collaborative fraud management, announced today that 2Checkout.com (2CO) is the most recent addition to the Global Fraud-Fighting Community, which is committed to working together to make e-commerce safer and more profitable. In partnership with 41st Parameter and its FraudNet solution, the leading fraud detection and transaction monitoring application for e-commerce, Ethoca augments 2CO's existing fraud prevention techniques to provide a robust solution that limits fraudulent activity for 2CO merchants while also improving the overall experience for both the merchant and the consumer.


  • 2CO provides turnkey e-commerce solutions for thousands of business customers around the world. Its proprietary technology supports back-office functions including financial reporting, tracking, fraud prevention, affiliate tracking, customer service and sales tracking. In 2007, 2CO serviced more than 2 million buyers for a total of over $220 million in sales. The 2CO Website serves an average of more than 9.5 million page views per month.


  • As a payment processor for 30,000 active accounts, 2CO delivers a solution that allows the merchant to outsource the entire payment process from start to finish. As part of this solution, 2CO guarantees that its merchants will never be hit with a chargeback as a result of a fraudulent order -- in fact, 2CO itself absorbs any cost related to chargebacks incurred by the merchant. Because merchants often deal with prospective customers where there is no prior history of purchase they must treat these types of orders as suspicious -- creating a constant tension between accepting business that might be risky or rejecting orders that might be good. The good experiences other merchants have with a customer are crucial to the Global Fraud-Fighting Community because it allows that customer to be trusted, and the order to be safely accepted, even if other factors make the order look suspicious. As a result, order processing is expedited, a more pleasant customer experience is created and profit and revenue are maximized. Since 2CO is making these decisions and accepting the risks for its merchant customers, it needs to minimize losses, but also has a responsibility to its customers to avoid rejecting good business.


  • The Global Fraud-Fighting Community powered by Ethoca, in conjunction with 41st Parameter's FraudNet Solution, offers a unique solution to this problem. By creating a global pool of merchant experiences, merchants and payment processors can rely on both the positive and previously declined orders of others, especially in cases where the merchant has had no prior dealings with a customer. The good orders of other merchants, coupled with the prior negative experiences, highlight positive transactions while exposing orders with increased risk. This is valuable information for predictive and pattern-based fraud management tools. More information makes fraud management tools more versatile, and the Global Fraud-Fighting Community provides a database of information that isn't available any other way.


  • By joining the Global Fraud-Fighting Community, 2CO is extending state-of-the-art fraud management tools to its merchants ranging in size from large e-tailers to traditional "mom and pop" stores. By tapping into the pool of member-provided experiences accessible through Ethoca, e-tailers of all sizes are able to work together to improve the customer experience, reduce fraud management costs, and earn more revenues and better profit. At the same time, the depth and range of 2CO's customer base means that its active participation greatly enhances the power and footprint of the Global Fraud-Fighting Community, and advances the global objective of collaborating to completely stamp out e-commerce fraud.


  • Ethoca's collaboration technology is enabling the Global Fraud-Fighting Community to unite as a powerful force against online crime by securely connecting its members to a collective pool of member-provided payment experience information. Community members are empowered to make more informed decisions about their customer transactions in a way that is efficient, effective and ethical, and in no way a competitive threat.

QUOTES:

  • "Since our inception, we have worked diligently to employ the best fraud prevention techniques to protect our merchants. We consider fraud prevention such an important part of our value that our customers never see a chargeback cost -- the buck stops with 2Checkout.com. We're making sure they are only seeing good orders," said Kristin Dach, CFO of 2Checkout.com. "By leveraging the integrated solution from Ethoca and 41st Parameter, we can continue our vigilance in keeping fraud out of our business and far away from our merchants. Serious fraudsters talk all the time, through chat or blogs or email or IM -- now merchants have to start doing the same, and the Global Fraud-Fighting Community is giving us that opportunity."


  • "The addition of the clout and number of merchants that 2Checkout.com brings to the table is another huge step forward in the expansion of the Global Fraud-Fighting Community," said Andre Edelbrock, CEO, Ethoca. "2Checkout.com understands the value that collaborating with other merchants has both in preventing fraud and ensuring a smooth customer experience from start to finish. We are excited to work with 41st Parameter to strengthen 2Checkout.com's insight into fraud and commitment to its customers."

About Ethoca

Working in partnership with forward-thinking businesses, individuals and law enforcement, Ethoca is making e-commerce safer and more profitable by building and powering the Global Fraud-Fighting Community.

To be more successful in combating fraud, companies must collaborate across and within industries by securely sharing transaction experiences in a way that is not a competitive threat. Ethoca enables businesses that operate in customer-not-present environments (Internet, phone, fax or mail) to make more informed decisions about their customer transactions, by sharing transaction experience data in a way that is secure, automated, effective and ethical. Community members see reduced fraud, lower fraud-related costs, increased revenue from fewer wrongly rejected orders and improved customer satisfaction rates.

Ethoca™ is a registered trademark of Ethoca Limited. For more information about Ethoca visit www.ethoca.com.

About 2Checkout.com. Inc.

2Checkout.com, Inc. (2CO) is the authorized reseller for thousands of tangible or digital products and services.

Established in 1999 and headquartered in Columbus, Ohio, 2CO provides turnkey e-commerce solutions to thousands of business customers around the world. 2CO's proprietary technology supports back-office functions including financial reporting, tracking, fraud prevention, affiliate tracking, customer service and sales tracking.

In 2007, 2CO serviced over 2 million buyers for a total of over 220 million in sales. The site serves of an average of over 9.5 million page views per month.

Since inception 2CO has maintained a steady and maintainable growth. The company's approach is geared towards providing quality service to new and existing clients without feeling the need to expand at a rate that would sacrifice service to our clients.

About 41st Parameter

41st Parameter is the leader in fraud intervention, providing proven solutions to help protect brands and customers, reduce fraud losses, and make the Internet a safer place to conduct business. Through a combination of risk management and loss prevention experience, leading technology, coupled with human interaction and best practices, 41st Parameter produces solutions with an unprecedented level of detection capability, decreasing the anonymity of the Internet and providing valuable insight to every online transaction and customer interaction. 41st Parameter makes the process of detecting and preventing fraud easier and more effective, reducing both expenses and potential losses. For more information, visit www.the41st.com.

Contact Information

  • CONTACT INFORMATION:
    Chris Iafolla
    SHIFT Communications
    (617) 779-1857
    Email Contact

    Dave Yohe
    41st Parameter
    (480) 776-5500
    Email Contact

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