Microsoft and Capital One Fight Fraud in Real Time

Case Study at a Glance:

• API: Enhanced Decisioning Data
• Industry: eCommerce
• Company: Microsoft
• Company Size: 166,000 employees
• Site:  Fraud Protection | Microsoft Dynamics 365

Background:

Microsoft’s mission is to empower every person and every organization on the planet to achieve more. This mission applies to the Microsoft commerce platform as well, which aims to deliver a best-in-class purchasing experience for every person and organization doing business with Microsoft. Microsoft has implemented modern technologies like Dynamics 365 Fraud Protection to ensure that rich, insightful data can be leveraged by all members of the payments ecosystem, contributing to a more secure world for all.

Microsoft Dynamics 365 Fraud Protection helps e-commerce, brick-and-mortar and omni-channel merchants protect their revenue and reputation by providing tools to decrease fraud and abuse, reduce operational expenses and increase acceptance rates. It helps combat purchase, account and omni-channel return and discount fraud with adaptive AI technology continuously learning evolving fraud patterns.

Capital One has been on a multi-year journey to transform and modernize its technology. Exiting legacy data centers has enabled our technologists to create tools and technology that fight fraud in real time.

Problems to be Solved:

For years, Capital One has used data analytics to help detect and prevent fraudulent spending. As sales continue to move online, card issuers and merchants have to be able to quickly and seamlessly protect their customers from fraudulent activity and remove friction from the online purchase process.

In online purchases, merchants have access to data (e.g., IP address and shipping address) that weren’t available at in-person purchasing situations. But since the existing network authorization rails aren’t built to share this type of data, issuers and merchants need to partner directly to handle this new data efficiently and effectively.

Solution and Partnership:

Capital One built a new authorization capability that allows us to partner with companies like Microsoft via the Enhanced Decisioning Data API on the Capital One DevExchange to significantly improve our ability to detect fraud for our customers and approve more legitimate transactions. The cloud-based API enables us to integrate into capabilities such as Dynamics 365 Fraud Protection’s transaction acceptance booster to provide additional data that helps Capital One make better approve/decline decisions in real time. 

In a conversation with Jeffery York, CFO for Microsoft Business Applications, Sarah Strauss, Head of Fraud for U.S. Card at Capital One, said, “We believe that, by leveraging technology and being able to engage with both merchants and consumers in a different way, it really benefits the overall ecosystem incredibly.” (See their full conversation in the video below.)

With every transaction, issuers have less than a second to relay their approve/decline decision. Handling and analyzing the new data provided by the Enhanced Decisioning Data API simply wouldn’t be possible if we were on mainframe infrastructure or using vendor software.

In partnership with Microsoft and their Dynamics 365 Fraud Protection product, this new solution lets us be much more targeted in our fraud declines, catching more fraud while lowering false positive declines.

Results:

Our partnership with Microsoft is driving positive outcomes for Capital One, our merchants and especially our customers. 

By using Dynamics 365 Fraud Protection with our Enhanced Decisioning Data API in their own online store, Microsoft has realized a 45% reduction in false positive declines and a 15% reduction in fraud. 

When we’re better able to protect our customers from bad actors while enabling them to spend freely and go on with their everyday lives, we create the best experience we can across the ecosystem.

Next Steps:

Learn more about the Enhanced Decisioning Data API on our DevExchange site.