PayTech firm GoCardless has launched a new fraud prevention tool within its global bank pay platform to help protect its users from payment fraud.
The company has launched Verified Mandates, which combines the Account Information Services capabilities of open banking with direct debit.
GoCardless claims this represents a new approach to tackling the issue of payment fraud, which is particularly problematic for recurring revenue businesses that collect payments through direct debit, with research finding that three in ten merchants consider payment fraud the primary threat to their business today.
Verified Mandates works through a three-step process. Customers enter a merchant’s checkout flow will be asked to complete a standard direct debit mandate creation form. They’ll be prompted to choose their bank, log into their online banking platform using their usual method, and authorise the setup of their direct debit mandate. The merchant will receive instant confirmation of the successful verification and the customer can complete the checkout flow as usual.
GoCardless CEO and co-founder Hiroki Takuchi said, “We’re proud to introduce a new way to tackle payment fraud, a primary threat for businesses everywhere. By taking advantage of the latest in open banking technology, we’ve created a feature which helps businesses protect their hard-earned revenue while meeting the high standards consumers now expect for any checkout process. We see Verified Mandates as the latest example of the power of open banking, enabling payments that offer a better experience for everyone.”
