Chargeback911 PYMNTS offers tools that solve a growing challenge facing merchants: Legitimate AI shopping agents are turned away by fraud detection systems, causing merchants to lose potential revenue, the company said in a Thursday (April 30) press release emailed to PYMNTS.
This challenge has arisen because even as proxy commerce has expanded with support from major companies, fraud systems designed around previous technologies have not kept up with the pace and misclassify legitimate agents as malicious bots, according to the statement.
“As the scope of proxy commerce expands, merchants face a clear choice: either adapt their detection and evidence infrastructure now, or watch an increasing share of legitimate revenues be rejected by their own systems,” Founder and CEO, Chargebacks911 Monica Eaton he said in the release.
Chargebacks911, a chargeback prevention and processing technology company, offers proxy commerce solutions in the form of Unified dispute management system (UDMS) and ResolveLab Platforms, according to the statement.
These tools use artificial intelligence and machine learning to handle agent transactions by capturing the full approval and authorization path and then giving merchants and financial institutions the visibility they need to differentiate between legitimate agent transactions and malicious automated activity, according to the release.
“Organizations that build this capability now will not only reduce false declines, but will enjoy a structural advantage when AI-driven purchasing becomes the norm,” said Chargebacks911, CTO. Donald Cosman he said in the release.
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PYMNTS Intelligence ReportAgents of Change: How Artificial Intelligence is Redefining Commerce“I found that agentic AI is reshaping commerce through autonomous transactions, redefining customer trust and creating a $1.7 trillion opportunity for those ready to lead.
Among retailers, 43% are experimenting with autonomous AI and 81% are confident in the technology’s ability to operate autonomously if the appropriate guardrails are in place.
“AI-driven retail is no longer theoretical, it is here and has already begun to transform commerce,” the report said. “Businesses that act now will set the standards for trust, speed, and customer experience. Companies that delay risk being overwhelmed by early adopters who define the next digital economy.”
Another intelligence report from PYMNTS,”The hidden costs of “good enough”: Identity verification in the age of robots and agentsfound that inadequate digital identity systems are a revenue trap that slows onboarding, alienates customers, and restricts expansion into new markets.
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