Fraudio

Fraudio provides payment fraud, merchant fraud and anti-money laundering detection through what it describes as a patent-pending AI super brain, serving merchant acquirers and card issuers.

Selling to acquirers and issuers rather than to merchants is the positioning that defines the product and it determines what it can see. An acquirer processes payments for thousands of merchants and an issuer sees every transaction its cardholders make, so both observe patterns across a whole portfolio that no individual merchant could. Detection improves with that breadth in a way it does not with better single-merchant modelling.

Merchant fraud as a distinct category from payment fraud is the subtlety worth understanding. Payment fraud is a stolen card being used; merchant fraud is the merchant itself being the problem, through transaction laundering, misrepresenting its business or simply taking payments for goods it will not ship. An acquirer carries the loss when a merchant fails, so that risk is theirs specifically.

Decomplexifying the industry is the stated intent and the sector deserves the criticism, since fraud detection is normally sold with opaque pricing, long integrations and models nobody explains. Fraudio publishes a pricing route and a Viva Wallet case study, with material in English and Spanish. Rates were not captured from the page.