3d secure

How EMV 3-D Secure Can Become A Competitive Advantage

E-Commerce continues to grow rapidly – and so does online fraud. Javelin Research states card­-not-­present (CNP) fraud now accounts for 81% of total fraud, representing billions of dollars in annual losses.

As an attempt to address this unfortunate trend, the industry is taking a fresh look at transaction authentication. The European market proves the perfect example as the landscape and drivers in that region have shifted to focus more on the side of security; whereas other regions, like North America for example,  prioritize customer experience. In Europe, PSD2 has introduced a legal requirement to apply authentication to any type of remote electronic interaction that carries the risk of fraud. Card associations – like Visa, Mastercard, and American Express – are also introducing global rules to make the use of these authentication programmes mandatory, encouraging issuers that EMV 3-D Secure (EMV 3DS) is the right move for an efficient path to assured compliance.  

EMV 3DS gives issuers a unique opportunity to turn the fight against CNP fraud into a competitive advantage. With the vast amount of valuable data that is available with EMV 3DS, partnering with an experienced fraud detection and prevention vendor that specializes in dynamic rules engines, predictive neural network modeling, and modern authentication can play a pivotal role in your authentication strategy—reducing the number of challenged transactions, supporting a wider range of devices, creating a consistent look and feel, and much more.

When implemented correctly, the financial benefits of EMV 3DS go well beyond fraud protection. Fewer fraudulent transactions translate into a reduction in challenges and more true sales, which reduces operational costs. Plus, more legitimate sales and a better shopping experience for cardholders instills confidence in your products—keeping them top-of-wallet.

Finding a partner that is at the forefront of innovation in the e-payment fraud prevention space is vital in building a valuable authentication experience for your customers; as it can simplify the process of delivering state-of-the-art protection and a seamless customer experience. The right partner should be able to provide patented fraud analytics, giving issuers, processors, and merchants the real-time insights they need to reduce false declines and increase conversions—all with the strong authentication required to achieve PSD2 compliance.

About the author

Mitchell Muro is based out of Broadcom's San Jose office in California and is a Product Marketing Engineer for Layer7 SiteMinder. Mitchell has years of experience in authentication and e-commerce making him a thought leader in the space.