Riskified and Marqeta Partner to Boost Card Authorization Rates and Slash False Declines

Quick Summary

Riskified and Marqeta have partnered to integrate pre-authorization risk intelligence into Marqeta’s modern card issuing platform. This collaboration enables card issuers to distinguish between legitimate customers and fraudsters with higher precision, effectively reducing false declines and capturing billions in previously lost ecommerce revenue.

How Does the Riskified and Marqeta Partnership Solve False Declines?

Pre-authorization risk intelligence is the cornerstone of this integration, addressing the $157 billion at risk due to false declines in U.S. ecommerce. By feeding Riskified’s global merchant data directly into Marqeta’s Real-Time Decisioning engine, issuers gain a holistic view of the consumer-merchant relationship that was previously unavailable. This enriched data context allows for:

• Greater precision in identifying trustworthy customers before the transaction reaches the authorization stage.
• A significant reduction in unnecessary transaction friction for legitimate cardholders.
• The ability to scale payment success without increasing the risk of fraudulent chargebacks.

What Results Has This Risk Intelligence Technology Delivered?

The implementation of AI-powered risk scores has already yielded significant performance metrics across various retail sectors. By leveraging real-time decisioning tools, partners have seen immediate improvements in their bottom line. Key success metrics include:

• A 25% reduction in false declines for top-tier U.S. card issuers.
• Authorization rate increases of 5.9% for ticketing and 1.6% for online retailers.
• Lorna Jane reported a bank authorization rate jump from 82% to 95%.
• A 90% decrease in chargebacks for specific merchant implementations.

How Does This Integration Enhance Marqeta’s Real-Time Decisioning?

Marqeta’s API-first platform now benefits from a layered security approach that combines its native predictive modeling with Riskified’s identity-based insights. This creates a sharper risk toolkit for card programs, allowing them to process nearly $400 billion in annual volume with higher confidence. The pre-authorization risk intelligence ensures that issuers do not have to compromise between growth and security, providing a seamless path to improved authorization accuracy across more than 40 countries.

FF NEWS TAKE:

This partnership between Riskified and Marqeta definitely moves the needle by tackling the "black box" of issuer declines. By bridging the data gap between merchants and issuers through pre-authorization risk intelligence, they are solving a multi-billion dollar friction point. For the fintech industry, this signals a shift toward collaborative data sharing as the primary weapon against sophisticated fraud and lost conversion.