Marqeta Announces RiskControl, An End-to-End Risk Management Suite of Products for Card Issuers to Combat Payment Card Fraud

Rhea-AI Summary

Marqeta (NASDAQ: MQ) launched RiskControl, a risk management suite for its card issuing platform. This solution addresses fraud and compliance across the cardholder lifecycle. Its key features include Real-Time Decisioning for transaction control, enhancements in Know Your Customer (KYC), and improved Disputes management. The solution aims to mitigate the rising risk of fraud amid increasing digital payment trends, enabling card issuers to streamline operations without compromising growth.

Positive

• Introduction of RiskControl enhances card issuer capabilities.
• Real-Time Decisioning offers fine-tuned transaction controls.
• Improved KYC solution increases customer onboarding efficiency.
• Enhanced Disputes tool streamlines chargeback processes.

Negative

• None.

Marqeta RiskControl is a comprehensive suite of risk management products built for customers using its global modern card issuing platform, providing card issuers with control over card transactions, optimizing performance, and mitigating program risk and compliance implications.

OAKLAND, Calif.--(BUSINESS WIRE)-- Marqeta (NASDAQ: MQ), the global modern card issuing platform, today announced its new RiskControl solution, a comprehensive product suite to help its customers better optimize their card programs and take control of end-to-end risk management. RiskControl is designed to provide Marqeta’s customers with comprehensive risk, compliance, and fraud management capabilities across the cardholder lifecycle, allowing them to focus on their business growth. RiskControl is anchored by the introduction of a powerful new fraud mitigation solution - Real-Time Decisioning - enabling card programs to develop fine-tuned transaction controls and help limit payment fraud. Additionally, RiskControl includes newly enhanced versions of Marqeta’s Know Your Customer (KYC) and Disputes products, alongside its previously announced 3D Secure.

Global card payments are increasing annually, with more than 450 billion card payments processed in 2020 alone. With the pandemic-fueled digital transformation in payments, the threat of fraud is also rising significantly, underlining the need for card issuers to offer businesses next-level control in order to accurately mitigate fraud. Marqeta’s RiskControl solution has been built as a direct offering to help reduce risk for its customers, enabling them to get ahead of fraud and streamline their risk and compliance programs without adding friction to the cardholder experience or slowing down card program growth.

“When we talk to our customers, the threat of payment fraud comes up consistently as one of their biggest business concerns. We’re seeing fraud increases worldwide weigh heavily on card issuers and processors, intensifying the need to offer highly effective risk and fraud management solutions that are tailored to individual cardholder experiences,” said Randy Kern, Chief Technology Officer of Marqeta. “Marqeta’s deep expertise in issuing helps us provide a unique, end-to-end fraud and risk management solution that is specifically tailored to card issuing transaction data. We’re putting the technology in our customers’ hands, unlocking their potential growth by proactively protecting them against the growing risk of fraud.”

Marqeta customers already using RiskControl include Klarna, Yonder and Branch. The core products in RiskControl – KYC, Real-Time Decisioning, 3D Secure, and Disputes – are designed to manage risk and compliance across the entire cardholder lifecycle, starting with customer onboarding and KYC, to payment transactions, through to the management of disputes.

• Know Your Customer (KYC) delivers identity verification capabilities designed to meet compliance requirements, help block fraudsters, and allow businesses to confidently onboard cardholders with minimal friction. Enhancements to Marqeta’s KYC solution can improve the pass rate to allow card programs to swiftly onboard more customers and reduce their time to value.
  
• Real-Time Decisioning empowers companies to develop fine-tuned controls for card transactions from hundreds of data attributes - including card network risk scores - to help manage payment fraud. Issuers have real-time control over their card payment transactions while ensuring they’re only accepted in accordance with a strict set of business rules. They can also monitor and review transactions to continuously improve their rules as business needs and external threats evolve. Developed in partnership with Featurespace, Real-Time Decisioning has already been rolled out in beta to select customers and is expected to be generally available later this year.
  
• Marqeta’s 3D Secure tool enables issuers to create tailored authentication experiences for online transactions. 3D Secure allows users to leverage their own business logic and data to mitigate fraud without adding unnecessary friction or cardholder dropoff.
  
• Marqeta’s Disputes tool provides risk operations teams with a streamlined process for handling disputes and chargebacks, speeding up resolution time and improving the overall cardholder experience. Marqeta customers can utilize the Marqeta Dashboard and program management services to help them effectively create, submit, and manage disputes at scale. Enhanced API capabilities are currently available in beta to Marqeta customers and are expected to be generally available later this year.

Marqeta’s data-driven RiskControl offering enables users to take their risk management to the next level. Its customers will have full control of the card program by gaining real-time insights and building controls tailored to cardholders. RiskControl aims to overhaul the old-fashioned way of doing risk management and implement an innovative, all-in-one solution built for risk teams managing card programs.

“Marqeta’s Real-Time Decisioning solution is an important tool in helping us to stay ahead of potential fraud concerns,” said Theso Jivajirajah, Chief Risk Officer of Yonder. “We've already seen how Marqeta's flexible controls have helped us fight against fraudulent transactions before they happen, giving our customers a better experience.”

Learn more about Marqeta’s RiskControl solution here: marqeta.com/platform/riskcontrol

About Marqeta (NASDAQ: MQ)
Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta’s modern architecture gives its customers the ability to build more configurable and flexible payment experiences, accelerating time-to-market and democratizing access to card issuing technology. Marqeta's open APIs provide instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards and authorize and settle payment transactions. Marqeta is headquartered in Oakland, California and is certified to operate in 39 countries globally. For more information, visit www.marqeta.com, Twitter and LinkedIn.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, quotations and statements relating to the capabilities and possible adoption of Marqeta’s product and services, and the expected need for Marqeta’s products and services. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: any factors creating issues with the effect of uncertainties related to the global COVID-19 pandemic on U.S. and global economies and demand for Marqeta’s products and services; the risk that Marqeta may be unable to further attract and retain customers; the risk that consumers will not perceive the benefits of Marqeta’s products and services; the risk that Marqeta's products and services do not operate as intended; the risk that Marqeta’s products and solutions will not achieve the expected market acceptance; and the risk that competition could reduce expected demand for Marqeta’s products and services. Detailed information about these risks and other factors that could potentially affect Marqeta’s business, financial condition and results of operations are included in the “Risk Factors'' disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2021, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqeta’s website at http://investors.marqeta.com. The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220421005205/en/

Media:

James Robinson

530-913-0844

jrobinson@marqeta.com

Source: Marqeta

FAQ

What is Marqeta's RiskControl solution?

Marqeta's RiskControl solution is a comprehensive suite designed to optimize card programs and manage risks, compliance, and fraud for card issuers.

How does Real-Time Decisioning in RiskControl help?

Real-Time Decisioning allows card issuers to manage payment fraud by developing tailored controls based on transaction data.

What are the benefits of the enhanced KYC feature in RiskControl?

The enhanced KYC feature helps businesses efficiently verify identities, block fraudsters, and onboard customers with minimal friction.

Who are some customers using Marqeta's RiskControl?

Customers using Marqeta's RiskControl include Klarna, Yonder, and Branch.

How does RiskControl address the issue of payment fraud?

RiskControl provides tools that enhance fraud mitigation strategies, allowing issuers to proactively protect against increasing fraud risks.