Highnote is launching a new payment processing service with the assistance of Feedzai – an AI-driven financial crime prevention company.
Feedzai, a Portuguese data science company focused on financial crime prevention, has partnered with Highnote, a fintech company, to support the launch of the latter’s acquiring business.
Highnote, which offers an all-in-one platform for businesses to embed virtual and physical card payments, ledger, and wallet functionalities into their systems and products, is expanding beyond card issuance to also help businesses accept payments. The startup, founded in 2020, secured a $90 million Series B funding this January to scale operations with new payment processing services in the U.S., enabling businesses to accept card payments online using plug-in checkout tools or tailored designs.
Using Feedzai’s AI-powered fraud detection and merchant monitoring tools enabled Highnote to quickly roll out its new service in line with all the related strict regulations in the financial sphere. The fintech firm chose Feedzai as a fraud prevention partner for several reasons.
First, AI-driven cybersecurity and payment processing tools deliver the best results when it comes to fraud prevention as they analyse loads of information in real-time, proactively flagging suspicious activities. All the major payment providers, including Mastercard, Visa and Swift are leveraging AI-based fraud prevention techniques and praising their efficiency. Industry research also indicates that in the U.S., more than 70% of financial institutions of different scales currently use artificial intelligence and machine learning for fraud detection.
Being able to detect fraud attempts before they turn to action is crucial today, as criminals become more and more crafty with their schemes. Therefore, today the fintech industry is fully focused on proactive fraud detection through AI and behavioural analytics.
Furthermore, the solution offered by Feedzai merges fraud detection and risk management into one system, simplifying its implementation and management. With the help of its new partner, Highnote is reducing the number of external vendors it relies on for payment processing. Instead of using multiple vendors for different parts of the payment process, it is integrating pre- and post-authorisation checks into one system. When a payment is initiated, the system examines if the transaction is valid, the card has sufficient funds, and there is no fraud risk. After the payment is approved, additional checks, such as verifying merchant compliance, preventing chargebacks, and analysing transaction patterns, may occur. Instead of handling these steps separately with different providers, Highnote is using one streamlined system powered by Feedzai to manage the entire payment process. Finally, the speed of deployment also matters, and the system offered by Feedzai is fully operational within 40-60 days.
Nicola Morris, COO of Highnote, said this partnership ensures security, advanced risk management, and legal compliance while keeping innovation at the forefront of the company’s new business line.
Feedzai’s advanced fraud platform currently helps protect consumers and financial institutions in over 90 countries. The platform carefully examines every digital transaction, from card purchases to instant transfers, detecting multiple risk signals in real time. By seamlessly integrating advanced device intelligence, extensive network data, and sophisticated behavioural biometrics, Feedzai’s AI tool swiftly identifies suspicious activity as it occurs before the actual transaction takes place, preventing fraud instantly and stopping financial losses before they happen.
