How Worldpay and Capital One are aiming to reduce payment fraud

Worldpay, a global payments technology provider that processes more than 50 billion transactions annually, has entered into a data sharing agreement with digital banking and credit card issuer Capital One to reduce payment fraud and false declines.

The partnership connects Worldpay’s FraudSight platform, a machine learning-based fraud detection system, directly to Capital One’s fraud risk decision engine, enabling real-time data sharing for transactions made using Capital One cards.

“Innovation and ingenuity drive our work with Worldpay, which brings a new level of security to every Capital One Card payment for merchants using FraudSight,” said John Borman, Head of Fraud Services at Capital One.

Risk reduction indicators

In June 2024, Capital One announced a partnership with Adyen and Stripe to combat fraud by introducing a free, open-source solution called Direct Data Share (DDS): an initiative designed to improve real-time authorization decisions, thereby reducing losses from scams and false refusals for merchants.

Capital One’s internal data shows that the Direct Data Share (DDS) program can reduce false positive declines (legitimate transactions incorrectly flagged as fraudulent) by 40%. False declines currently affect approximately 6% of e-commerce transactions, with up to 10% of these being incorrect declines, representing a significant loss of revenue for merchants.