UATP and Burbank Roll Out CPoI® to Slash Online Fraud and Unlock Billions in Airline Merchant Revenue
CPoI® Targets $40 Billion in Online Payment Fraud, Promises Big Gains for Airlines
In a strategic move set to reshape how airlines process online payments, UATP has partnered with Burbank to offer Card-Present over Internet (CPoI®) technology—a game-changer in tackling fraud and inefficiencies for airline merchants. The collaboration is laser-focused on solving problems that drain over $40 billion annually from online businesses, including rampant fraud, rising chargebacks, and the massive costs of false-positive declines.
Technology Leap: Every Mobile Device as a Secure Payment Terminal
Burbank’s CPoI® turns any mobile phone into a secure, in-store style card reader. Online shoppers simply tap their payment card and enter a PIN on their device—just like at a physical checkout. This simple action shifts liability back to card issuers, allowing merchants to benefit from the lower fraud and better authorization rates seen in traditional card-present transactions.
| Annual Online Payment Fraud | False Positive Losses | Chargeback Increase (YoY) | Fraud Growth Rate (YoY) |
|---|---|---|---|
| $40 Billion | $443 Billion | 52% | 69% |
Fraud Prevention and Cost Savings: Airlines Set to Benefit Most
The payment fraud epidemic is surging at 69% annually, while false positives (legitimate transactions declined by anti-fraud filters) cost merchants an astonishing $443 billion each year, with 65% of blocked transactions actually valid. For airlines—operating in an $837 billion online market—eliminating these friction points represents a huge opportunity to boost both revenue and reputation.
By using CPoI®, airline merchants not only minimize fraud and chargebacks but can also do away with costly anti-fraud tech and orchestration layers for card-not-present (CNP) payments. Merchants save on scheme fees, reduce chargeback costs, and gain a familiar and trusted experience for customers—all while liability for fraudulent transactions stays with issuers.
| Key Merchant Benefits | Description |
|---|---|
| Liability Shift | Card-present status means fraud liability moves from merchant to issuer. |
| Lower Processing Costs | No CNP orchestration, reduced chargebacks, and fewer scheme fees. |
| Minimal Anti-Fraud Expense | Less need for 3DS, AI-based systems, and additional models. |
| Enhanced Reputation | Fewer chargebacks and fraud improve trust and customer experience. |
Industry Shift: Card-Present Security Moves Online
This technology doesn't just combat fraud; it sets a new standard for online security and ease. "CPoI® will expand online shopping accessibility to a broader customer base, providing superior transaction protection while enhancing merchant fraud prevention standards," said Burbank CEO Justin Pike.
For travelers, this means paying online with the same security and simplicity as buying a ticket at an airport kiosk—bolstering confidence and paving the way for seamless future innovations in payments.
What’s Next for Airline Merchants?
The UATP-Burbank partnership is starting with airlines but could reshape payment processing across many sectors. For now, UAL and its peers are positioned to cut out billions in unnecessary costs, improve authorization rates by 5-10%, and create safer digital transactions for both merchants and consumers. The move may set a new standard in a fiercely competitive industry, unlocking revenue and security in ways legacy online payments could not.
With digital payments racing ahead, will card-present technology online become the next industry norm? Investors and merchants will be watching closely as UATP’s new solution rolls out to the skies and beyond.
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