News

CardLinx standard takes aim at return fraud

February 11, 2014

The CardLinx Association, a new association that facilitates the interoperability and growth of card-linked offers (CLOs), and Deem, a cloud commerce company, today announced a new draft protocol, the CardLinx Chameleon Standard, for pro-actively combating fraud resulting from returns of CLO purchases. According to the companies, CLOs, in which a customer's use of a payment card automatically generates a discount, pose limited fraud risks.

The principal known fraud scenario involves returns or chargebacks with the intent to retain discounts. The new standard addresses when a rebate reversal should occur and capabilities for automatic reversals. It also establishes data reporting requirements that will enable detection of fraud patterns and fraudsters in real time.

A task force, chaired by Deem, has completed a draft of the CardLinx Chameleon Standard, which is now available for member comment at www.cardlinx.org. In addition to Deem, other companies participating in the task force include MasterCard, Living Social, CardLytics and ValPak/Cox Target Media.

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