Cielo Partners with CyberSource to Bring Global eCommerce Fraud Prevention Solution to Brazilian Merchants

Includes the world's largest fraud detection radar, enabling eCommerce merchants to sell more, more safely, worldwide

SÃO PAULO, —March 20, 2012—

Cielo, a leading electronic payment solutions company in Brazil and other Latin American countries, has announced a partnership with CyberSource, a leading global payment management solution provider, to deliver what will be the most complete global eCommerce fraud prevention solution in Brazil.

Cielo aims to improve the performance of eCommerce in Brazil, providing a solution that gives virtual stores the ability to hold onto good customers and precisely identify fraudulent transactions, enabling greater conversion of sales at a lower operating cost.

"After a year of analyzing the solutions available to us, we combined our expertise in eCommerce with CyberSource's Decision Manger fraud solution, the most sophisticated service on the market for detecting payment fraud," said Eduardo Chedid, Cielo's Vice President of Products and Businesses. In 2011, Cielo processed over 80 million transactions at online stores.

"Data is the lifeblood of fraud detection," says Fernando Souza, General Director of CyberSource Brazil. "Our partnership allows Cielo customers to compare attributes of inbound orders with the more than 60 billion transactions processed annually by CyberSource and Visa, plus results of advanced detection technologies like device fingerprinting. This new capability will enable Brazilian eCommerce to be conducted more safely and to grow even faster."

The CyberSource solution, which includes the world's largest fraud detection radar, combines a world-leading decisioning system with expert consulting to accurately detect online fraud attempts in real time.

Decision Manager also flags international cards issued outside of Brazil. "With this new solution, we believe we gain a competitive edge and give our merchant customers an even more complete eCommerce solution. Leading up to the 2014 World Cup and 2016 Olympics, we anticipate a surge in international online orders; this added level of fraud detection will serve our customers and protect their customers' buying experiences," added Chedid.

How It Works

CyberSource Decision Manager provides virtual stores with a detailed analysis of online purchases. Each order can be evaluated by over 260 tests, all in approximately two seconds. Results, including detailed assessment of anomalies and correlations as well as a computed risk score, are evaluated according to rules set by the merchant. At that point, the order is automatically accepted, rejected, or sent to manual review. "In addition to reducing the number of transactions that need to be manually verified, Decision Manager more precisely identifies fraudulent operations and helps ensure higher conversion of sales," said Souza.

Some Specific Advantages

The IP address locator, part of the world's largest fraud detection radar, is a notable feature of Decision Manager. It can identify the real IP address of the scammer's computer, even if the fraudster tries to hide the information. It also includes a cross-check of a computer's transaction history at other stores, worldwide. This, combined with other global correlations, provides significant advances to assist Brazilian merchants in their fight against online fraud.

"For Brazilian eCommerce, CyberSource tools are a great step forward, similar to the implementation of chip and pin technology to replace the magnetic strip," said Chedid.

Another advantage is integration with Cielo Lynx, Cielo's risk management tool that has been operational since 2001. Transactions flagged as fraudulent by Cielo Lynx, will be loaded into the CyberSource database, providing even further opportunities to identify and prevent illegal transactions.

"Cielo is known for having the lowest rate of eCommerce fraud in the Brazilian market, and the new tool will add anti-fraud intelligence from the store's point of view to our portfolio," Chedid added.

The new agreement also includes consulting by CyberSource professionals who design fraud screening strategies and rules, monitor the solution's performance, and assess results on a day-to-day basis.

CyberSource, a wholly-owned subsidiary of Visa Inc. (NYSE "V"), established operations in Brazil in 2011 and has a local team to support online merchants and Cielo in the implementation of this powerful tool.

About CyberSource Fraud Management Solutions

CyberSource has been helping merchants distinguish good orders from bad since 1995. CyberSource Decision Manager is used by merchants worldwide and across multiple industry categories, including: airlines and travel, retail and direct response, services, and social and digital media/entertainment. CyberSource also provides managed services worldwide, staffed by experts from these various industries, to complement the skills and expertise of subscribing merchants.

About Cielo

Cielo S.A. (Bovespa: CIEL3 | OTC: CIOXY) is a leading company in electronic payment solutions in Brazil and Latin America. It is responsible for accrediting commercial establishments for the capture, transmission, processing and clearing of transactions made with a credit and debit card. Cielo captures transactions for the world's top credit cards: Visa, MasterCard®, American Express® and Diners Club International, as well as JCB (Japan Credit Bureau), the fifth largest brand in international payment cards. Elo, the only 100% Brazilian brand that also captures payments using Cielo, which also has partnerships with major regional brands such as Aura, Sorocred, Policard and Goodcard. Furthermore, Visa Vale, Ticket® and Sodexo benefit cards are also accepted in the accredited network, as are Bônus CBA, Cabal Vale, Verocheque and Sapore Benefícios cards, reinforcing its leadership in this segment.

The latest in technology is used in the Cielo network, allowing it to operate with a 99.995% rate of availability all year long and with 100% availability on the biggest shopping days. The company also has the most modern equipment system in Brazil (equipment age is 1.9 years, on average) and more than 1.2 million active establishments (considering those that have carried out transactions on Cielo terminals over the last 60 days), covering 99% of the nation.

More information on Cielo

FSB Comunicações — (11) 3165-9596
Paulo Sadalla — (11) 3165-9562 | paulo.sadalla@fsb.com.br
Mariana Ribeiro — (11) 3165-9705 | mariana.ribeiro@fsb.com.br

About CyberSource

CyberSource, a wholly-owned subsidiary of Visa Inc. [NYSE: V], is a payment management company. Over 390,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management, and simplify payment security. The company is headquartered in San Francisco and maintains offices throughout the world, with regional headquarters in Singapore (Asia Pacific); Tokyo (Japan), Miami/Sao Paulo (Latin America and the Caribbean), and Reading, U.K. (Europe/Middle East/Africa). CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit www.cybersource.com.

Global Corporate Relations:

Elvira Swanson
globalmedia@visa.com