News

Study: US market for card fraud detection software set to fire up

March 13, 2014

A new study from Mercator Advisory Group examines how changing market dynamics are shaping fraud detection software solutions, reviews leading products, and assesses the future of fraud detection efforts by card issuers in the U.S.

"Card Fraud Detection Software: Enterprise and Transaction Solutions Converge" discusses the importance of solutions for securing card data and managing PCI compliance costs. It also looks at the potential impact of emerging solutions for mobile card acceptance.

The report analyzes key events and themes worth tracking in 2014, including EMV implementations, fallout from interchange regulation and merchant discount litigation, the rollout of PayPal in stores, and the increasing importance of industry specialization in managing payment volume growth.

"Competition in the U.S. market for card fraud detection solutions is about to ramp up," said Michael Misasi, senior analyst at Mercator Advisory Group and author of the report. "Vendors that have traditionally served international markets or that have expertise in adjacent capabilities are taking aim at the mainstay solutions in the U.S."

Highlights of the report include:

• overviews of seven leading vendors of fraud detection software and their products;
• the most recent estimates from Mercator for U.S. card fraud;
• analysis of the impact of EMV changes the way issuers need to approach transaction scoring;
• a forecast for best-of-breed solutions in a market moving toward enterprise-level fraud management; and
• a viewpoint on how the payments industry can move forward following recent data breaches.

One of 10 exhibits in the 22-page report: