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As the fastest growing area of payments, digital commerce has enabled consumers to use their connected devices as payment devices. Browsers, mobile apps and connected devices – have opened up newer avenues of payment. Gartner estimates that by 2022, the number of connected devices will exceed 20 billion.

In such an exponentially expanding scenario, combating fraud through accurate verification of identity becomes both critical and challenging. It is vital that organizations invest in newer strategies and solutions that prevent fraud without impacting speed and ease of customer experience. In this context, 3-D Secure 2.0 is an important protocol that can accelerate authentication in digital commerce with high speed and security.

What does 3-D Secure 2.0 actually do? How does it assure better and more effective fraud-detection through intelligent identity verification?

While 3-D Secure has been around for quite some time now, the new 2.0 version offers frictionless payment experience for users and improved decisioning and real time scoring for financial institutions. Merchants can send multiple transaction attributes to enable the issuer authenticate customers more accurately and intelligently - without slowing down the transaction experience.

3-D Secure 2.0 places the user at the core of its operations. The new 2.0 protocol facilitates data exchange between the merchant, cardholder and issuer for greater accuracy, but without the requirement of static passwords. Friction in the payment workflow is thus minimized on all devices. Abandonment rates get significantly reduced, thanks to better user experience. And when biometric methods (such as face or voice recognition) are introduced when required, not only does the authentication become more secure, they also create a better consumer experience.

With looming timelines of mandatory compliance to EMVCo 3D Secure 2.0 guidelines (by both Mastercard and VISA), 3-D Secure 2.0 issuers will need to

  • Use the new message formats to process the authentication workflow.
  • Deploy new user interfaces (in App and HTML versions).
  • Execute risk-based authentication with available data.
  • Set up new security measures.

At FSS, we have enabled numerous banks and processors in Europe, Africa, Middle East and Asia to go live with our FSS Secure3D As-a-Service offering. Our model assumes responsibility for risk-assessment, interchange and regulatory compliance, reporting and security. Issuers and merchants can thus more efficiently detect fraud patterns and make better informed authentication decisions. What’s more, we have embedded biometric, facial and voice recognition in our solution.

We believe that EMV 3-D Secure 2.0 will provide enhanced opportunities to increase security and fight fraud. With its focus on continued improvements in payments security and seamless digital payment experiences, this is indeed a win all situation for end-users, issuers, merchants and acquirers.

Philip George
Head Sales and Business Development, Canada

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