Use Case Business Account Insight API: How SMSParking decreases fraud and improves the customer experience

SMSParking offers parking services throughout the Netherlands via the SMSParking App, Portal, or SMS service. Clients can settle their parking costs with their mobile phones. To improve their service, automate their processes, and prevent fraud, SMSParking makes use of the Business Account Insight API. In this interview, Mladen Ciric, founder and director of SMSParking, explains how this API provided valuable insights into customer-initiated refunds and cancellations (in dutch: stornering). This resulted in a substantial decrease in fraud of more than 90% and improved the customer experience.

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Who is SMSParking?

“SMSParking offers mobile parking in the Netherlands. To make use of our services, customers simply register via a digital form and start immediately. In 2008, SMSParking launched in Amsterdam. At that time, we were the first to offer mobile parking services via SMS. Since then, we have expanded to more than 180 cities in the Netherlands and extended our mobile parking service to use the SMSParking App and portal. SMSParking is also a great solution for business customers. With over 9.800 business accounts, we are a major player in the mobile parking business field.”

“The Business Account Insight API has brought us considerable value. Previously, refund insights were available a day after a transaction, or on Monday if the transaction took place on a weekend. Now, insights are available immediately, in real-time.”

What was the problem?

“Unfortunately, we encountered a problem with clients who wrongfully reverse transactions, which results in a cancellation of payments. In general, reversing a transaction can have multiple reasons. For instance, insufficient funds or an expired account: this can happen unintendedly. However, during an internal analysis, we discovered a trend that indicated fraud: most reversed transactions were executed just before or after closing hours of our office on Fridays. This meant that these clients could park, but had no intention of paying for it. Sometimes this could result in up to 48 hours of unpaid parking. Due to the way our process was set up, we received the reporting of reversed payments that took place during the weekend, on Monday morning. Therefore, we were not able to react in a timely manner. As a result of this, the damages amount accumulated to a significant sum every year. This is due to the fact that SMSParking needs to pay the parking fees directly to the municipality and car parks, regardless of the payment being reversed.”

What is the solution?

“We wanted and needed a solution that provided us with real-time bank account insights. This solution would allow us to react in an adequate and timely manner to refunds. During a meeting with our bank, ABN AMRO, we mentioned our problem and notified them about our needs. It turned out that they had recently launched a new API that offered the functionality we were looking for. I was instantly convinced after ABN AMRO told me that this API combines easy functionality and efficiency with state-of-the-art reporting that supports JSON, our developers’ favorite file format.”

“The Business Account Insight API combines easy functionality and efficiency with state of the art reporting in JSON.”

How does it work?

“We have now fully automated this process by integrating the Business Account Insight API. A call via the API is made hourly and the data returned is automatically filtered to display refunds. An email is then sent directly to our support department which instantly starts to handle these refunds. After checking the transaction details, the clients are contacted by phone, SMS, or email. The person concerned is told that the payment was reversed and that if they execute the payment (via Tikkie) within fifteen minutes, the parking session is continued. Clients whose refund was (by mistake) unintentional can easily pay and continue parking. Clients that never intended to pay generally ignore all our attempts to contact them. Their parking session is discontinued and their attempt at fraud is prevented. This way we were able to reduce our costs regarding fraud from EUR 100.000 in 2020 to EUR 1.000 in 2021.”

How did the integration go?

“The integration went very well and I was really satisfied. By entering the pilot phase, we essentially entered into a collaboration with ABN AMRO to further develop the product (API) together. Thanks to the openness and communication on both sides, we really felt that our ideas and suggestions were heard. We gave a lot of technical feedback that was well received. ABN AMRO used this feedback to develop the API and as a client, this gave us a say in how the product turned out.”

What are the benefits?

“We have experienced a number of benefits due to the use of the Business Account Insight API. These are:

• The risk of refund fraud was reduced by 99%.
• Direct costs (cash out) were reduced significantly.
• The process is more efficient due to automation and real-time insights.
• Improved customer experience because of more efficient, effective, and personal client support.”

“Most clients whose refunds were unintentional, experience the quick and friendly follow-up very positively.”

Curious what APIs could do for you?

We are happy to discuss the opportunities with you. Have a look at the ABN AMRO Developer Portal and contact us!