Stripe, a San Francisco, CA-based global technology company that builds economic infrastructure for the internet, acquired Bouncer, a company building card authentication technology to reduce fraud during online transactions.
The amount of the deal was not disclosed.
Bouncer’s team – led by Will Megson, CEO – and technology will join Stripe to further enhance the capabilities of Radar, Stripe’s machine-learning-based fraud prevention tool.
Bouncer will be integrated into Stripe Radar. When it identifies a specific transaction as high risk, Radar will use Bouncer’s card scanning and verification technology to confirm that an end customer has a legitimate card in their hands at the time of the purchase.
Bouncer has developed card scanning and risk technology used to help online businesses reduce fraud and authenticate cards. When an incoming transaction is flagged as high-risk, rather than blocking the purchase entirely, a business can use it to verify that a card being used is legitimate. Bouncer does this by requesting live photos of the card. Pictures can be taken on any smartphone, and the scanning technology supports all payment card types, card designs and lighting environments, including low light. Next, Bouncer performs a risk assessment—in less than 400 milliseconds—to validate if the card is real or stolen. All data handling is PCI- and GDPR-compliant. If the card is stolen, the transaction will be rejected; if real, the purchase will be approved and completed. This whole process takes less than one second, providing a seamless experience for legitimate customers while hardening defenses against fraudsters.
Stripe Radar is powered by Stripe’s global network, continually learning from transactions across the millions of businesses using Stripe in 195 countries, as well as signals from Stripe’s financial partners.