Payment service provider Plaid partners with Riskified to enhance risk management for ACH transactions
Riskified, a leading e-commerce fraud prevention company, and Plaid, a fintech infrastructure company, have forged a partnership that aims to bring Riskified's AI-powered risk intelligence tools to merchants receiving automated clearing house (ACH) payments.
The partnership aligns with Plaid's anti-fraud network Beacon, which was launched this summer, and Plaid's Signal, a transaction risk scoring mechanism. This collaboration is expected to enable faster access to merchants using ACH payments, particularly those with Plaid.
In 2022, the volume of ACH payments increased more than $1 trillion to $76.7 trillion, according to the National Automated Clearing House Association. As ACH payments expand into crypto or trading platforms and buying precious metal metals online, the need for robust fraud prevention solutions becomes increasingly important.
Riskified has collected behavioral data from consumers on 2.5 billion transactions historically and underwrote over $105 billion in transactions last year. The partnership with Plaid includes the use of Riskified's guarantee solution for protection against fraud and insufficient funds.
The partnership is an expansion of Riskified's services into the segment of merchants in the crypto and trading industries. Riskified aims to expand ACH offerings and coverage to more merchants, beyond their current trading platform, crypto platform, and marketplace clients.
The partnership may result in Riskified providing services to merchants in new industries, such as travel. The third customer to use Riskified's ACH offerings after the partnership with Plaid has not been publicly disclosed.
The partnership was born out of eight months of work, aided by mutual clients. The partnership may lead to the common use of ACH payments expanding to different verticals, including travel.
Plaid Signal is being used to provide greater intelligence for assessing the risk of a transaction and unlock an instant ACH experience. The partnership with Plaid is an enabler to Riskified's go-to-market strategy.
Riskified's platform is being used to derisk transactions for merchants like Wayfair, taking on the liability. The partnership aligns with Plaid's anti-fraud network Beacon, further strengthening Riskified's commitment to combating fraud and ensuring secure transactions for all parties involved.
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