The traditional payment sector is still struggling to find solutions against fraud, especially when it comes to online fraud detection. Credit and debit cards, as well as any payment processor making use of these payment methods, can be cancelled, reversed and disputed at any time. Merchants and retailers are expanding their presence online, which only invites more fraudulent payments. Bitcoin is a clear-cut solution to this problem, but maybe Ravelin has a temporary fix on hand as well.
Make sure to read: Portugal’s Financial Woes Threaten Eurozone – Bitcoin Effort Imminent?
Ravelin – Online Fraud Detection Startup
Online commerce is becoming an ever-increasing point of focus for merchants and retailers around the world. In fact, various brands have made the full transition to only offering an online presence these days, rather than opening shops all over the world. Reaching a global audience has never been easier, but there are quite some drawbacks as well.
First of all, there is no traditional payment system that lets anyone send money to any other person in the world. Even popular solutions such as Paypal have certain country restrictions, reducing part of the benefit of establishing an online presence. Furthermore, regardless of which payment processor a retailer chooses, there is always the risk of fraud and chargebacks.
Ravelin aims to tackle the fraud problem in a completely different manner. There are many revenue protection techniques available only to some of the largest online companies and Ravelin wants to make these tools affordable for small businesses as well. No further details were announced as to what type of skills and tools would be used exactly however.
That being said, early indications suggest Ravelin will try to harness machine learning and data science to create a trustworthy and robust fraud protection service. Additionally, the startup is confident they can produce more accurate results compared to established firms around the world. Quite a bold statement, as it remains to be seen whether or not Ravelin can put their money where their mouth is.
Such an elevator pitch has attracted a fair bit of interest from investors and VCs, including Passion Capital, Jeremy Millar, Paul Forster and Playfair Capital. A total amount of £1.3m has been raised in the latest round of funding, which will help grow the Ravelin team and customer-base. Speaking of this customer-base, Ravelin wants to target food delivery, on-demand retail, mobile wallet and gambling companies first.
Bitcoin a Far Cheaper and More Reliable Alternative
The efforts made by Ravelin have to be applauded, as online fraud is a matter near and dear to the hearts of retailers all over the world. That being said, Ravelin will still act as a third-party intermediary between the customer and the retailer. Both parties have to put their full trust in Ravelin to do the right thing, which is not how things should evolve.
But there seems to be a small move in the right direction by Ravelin anyway, as they will rely – partially at least – on computer-based logic, rather than the human element. As we all know, human elements in a transaction are prone to corruption or misinterpretation, whereas computers are not.
It will take some time until Ravelin offers their service to the general public and in the meantime, Bitcoin is making headway as an alternative online payment method. Due to the nature of Bitcoin, there is no element of fraud or chargebacks from the consumer side, putting the minds of retailers at ease when dealing with digital currency.
Furthermore, accepting Bitcoin payments does not require any additional infrastructure to be set up. For an online shop, all it takes is the addition of a few lines of code and Bitcoin payments can be accepted within minutes. Bitcoin adoption will thrive once more retailers realise their financial freedom is in digital currency and not in a broken financial ecosystem.
Source: Tech City News
Images courtesy of Shutterstock, Ravelin