Stripe launches Enhanced Issuer Network to help businesses reduce fraud and boost authorization rates

STRIPE, A FINANCIAL INFRASTRUCTURE PLATFORM FOR BUSINESSES, TODAY ANNOUNCED THE LAUNCH OF ENHANCED ISSUER NETWORK, A SET OF PARTNERSHIPS WITH MAJOR US CARD ISSUERS. STRIPE PROVIDES SECURE ACCESS TO TRANSACTION FRAUD SCORES FROM STRIPE RADAR, ITS FRAUD PREVENTION SOLUTION, THROUGH AN ENCRYPTED PATHWAY WITH ISSUERS INCLUDING CAPITAL ONE AND DISCOVER. ENHANCED ISSUER NETWORK HELPS ISSUERS DECREASE FRAUD, REDUCES CHECKOUT FRUSTRATION FOR CONSUMERS, AND INCREASES PAYMENT AUTHORIZATION RATES FOR BUSINESSES..

• Enhanced Issuer Network features partnerships with major US issuers including Capital One and Discover.

• Partners use Stripe Radar scores to reduce fraud and false declines, recovering millions of dollars in revenue for businesses.

• On average, businesses see an 8% reduction in fraud and a 1–2% authorization rate uplift.

How Radar enhances issuers’ fraud models

Every year, Stripe processes hundreds of billions of dollars for millions of businesses around the world. Using proprietary machine learning techniques trained on this transaction data, Radar assigns each transaction a score from 0–99 based on the risk that it’s fraudulent: 0 being the lowest risk and 99 the highest.

Industry research reveals that false declines—legitimate transactions declined as suspected fraud—cost US companies more than $11 billion in lost revenue in

2021. They also frustrate customers: 33% won’t shop somewhere they’ve had a purchase inaccurately declined.

Issuers’ fraud models are based on a subset of transaction information. By contrast, Radar’s algorithms train on data from millions of global businesses and every layer of the financial stack, from checkout flow data to bank information. Even if a card is new to a specific business, there’s a 91% chance it’s been seen before on Stripe. When Radar fraud scores are used in tandem with the information issuers already have, issuers can increase the accuracy of their own authorization processes and confidently approve more legitimate transactions.

Enhanced Issuer Network enables issuers to incorporate Radar fraud scores into their own authorization tools. Capital One does this with its Enhanced Decisioning Data API.

“We’re thrilled to be a launch partner for Stripe’s Enhanced Issuer Network. With Capital One’s Enhanced Decisioning Data API, we can securely receive fraud scores from Stripe Radar that improve accuracy during the transaction authorization process,” said Sarah Strauss, head of customer services and strategy at Capital One. “In particular, this makes legitimate transactions more likely to be approved. The partnership has already resulted in hundreds of millions of dollars in recovered revenue for businesses.”

How Enhanced Issuer Network leads to higher authorization rates and reduces fraud

Businesses running on Stripe benefit from Enhanced Issuer Network with no... Keep reading