U.S.-based fintech Stripe announced on Friday it has acquired Bouncer, a card authentication technology company that is seeking to reduce fraud during online transactions. According to Stripe, Bouncer’s card scanning and risk technology is used to help online businesses reduce fraud and authenticate cards.
Stripe also revealed that Bouncer will be integrated into Stripe Radar, a fraud prevention tool whose machine learning models are trained on purchases made at millions of companies around the world every day.
“Radar is fully integrated into Stripe’s payments platform. 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. This extra layer of protection will reduce false positives among potentially high risk transactions.”
While sharing more details about the acquisition, Simon Arscott, Business Lead for Stripe Radar, stated Bouncer is a “great tool” for modern internet businesses because it allows them to quickly identify stolen cards and ensure legitimate customers may transact with any blocking issues.
“With the addition of advanced card scanning capabilities, Stripe Radar will be able block more fraud and further increase revenue for millions of businesses around the world who rely on Stripe.”
Founded in 2010, Stripe is a technology company that builds economic infrastructure for the internet. Businesses of every size, from new startups to public companies like Salesforce and Facebook, use the company’s software to accept online payments and run technically sophisticated financial operations in more than 100 countries. The acquisition of Bouncer comes just days after Stripe announced its plans to acquire TaxJar, a provider of sales tax software for internet businesses. TaxJar will reportedly help businesses automate tasks such as:
- Providing accurate sales tax rates at checkout, tied to the exact street address of the customer
- Automatically submitting tax returns to local jurisdictions and remitting the sales tax collected
- Producing local jurisdiction reports to show sales and sales tax collected—not only for each state, but for relevant counties, cities, and other special jurisdictions
- Evaluating a company’s products and intelligently suggesting the right product tax code