#USA #Washington #Burbank #UATP #CPoI

UATP Partners with Burbank for Improved Airline Payment Solutions

UATP, a global network dedicated to simplifying payment processes, has recently announced a significant partnership with Burbank, a fintech innovator known for its groundbreaking Card-Present over Internet (CPoI®) technology. This collaboration aims to provide airline merchants with a secure and efficient means to process online card-present transactions, addressing the escalating issues of payment fraud in the industry.

Understanding the Need for Advanced Payment Solutions

The airline industry faces numerous challenges pertaining to payment processing, particularly with rising incidents of fraud and chargebacks. Recent statistics show that online merchants incur over $40 billion annually due to fraud and related chargebacks, with a staggering growth in payment fraud rates at 69% year-over-year. Furthermore, a significant portion of chargebacks—52%—continues to escalate, resulting in financial losses for merchants and a growing need for effective solutions.

One critical issue in this landscape is the prevalence of false positives. Legitimate transactions being flagged as fraudulent amounts to losses of $443 billion each year, with 65% of those blocked transactions incorrectly identified. The introduction of Burbank's innovative CPoI® technology aims to address these pressing challenges by significantly enhancing transaction security and reducing the potential for fraud.

Transforming Mobile Devices into Secure Payment Tools

Burbank's CPoI® technology transforms conventional payment methods by turning every mobile phone into a point-of-sale (POS) device. With this system, online shoppers can complete their purchases by simply tapping their payment card against their mobile device and entering their PIN, mimicking the trusted in-store purchase experience. This familiarity not only strengthens customer confidence but also aligns with security protocols similar to physical transactions by verifying the cardholder’s identity.

The partnership between UATP and Burbank does not only promise higher authorization rates—about 5-10% better than card-not-present transactions—but also opens up new revenue streams for merchants by mitigating the instances of false positives.

According to Ralph Kaiser, UATP's President and CEO, “This partnership mirrors our commitment to collaborate with leading innovators to evolve our Merchants' payment processing capabilities. By merging our expertise with Burbank's state-of-the-art technology, we are poised to respond effectively to market demands, leading to cost savings and new revenue opportunities.”

Partnership Benefits in Payment Processing

The collaboration between UATP and Burbank is poised to deliver substantial benefits to merchants, particularly in the airline sector, through four pivotal enhancements:

1. Shifts Liability: Transactions processed through CPoI® are classified as card-present, ensuring that liability remains with issuers and does not transfer to merchants.
2. Reduces Processing Costs: By eliminating scheme fees and minimizing chargebacks and their associated servicing costs, CPoI® provides a streamlined financial solution.
3. Minimizes Fraud Costs: The necessity for extensive anti-fraud AI systems and 3D secure protocols, often required in card-not-present transactions, will be significantly reduced.
4. Lowers Total Costs and Reputational Risk: With fewer chargebacks and enhanced trust in digital transactions, merchants can expect lower operational costs and improved public perception.

Justin Pike, CEO of Burbank, emphasized the importance of synchronizing in-store security features with digital payment systems through CPoI®. “Our goal is to revolutionize online commerce, drastically minimize fraud risks, and eliminate false positives—issues that are continually undermining merchant revenues. CPoI® aims to enhance payment accessibility while providing exceptional transaction protection,” he noted.

Conclusion: A New Era of Secure Online Payments

The strategic alliance between UATP and Burbank marks a pivotal evolution in payment processing technology. By addressing core issues such as fraud and chargebacks, this collaboration not only enhances security but also fosters a trusted shopping environment for online customers. The rollout of CPoI® is set to redefine the landscape of digital payments, particularly benefiting the airline industry while creating wider opportunities in various sectors.

As UATP continues to expand its payment processing capabilities and evolve alongside market demands, the integration of innovative technologies like CPoI® will undoubtedly lead to significant advancements in how merchants operate and engage with their customers in the future.