In the early 2000s, consumers began migrating to the digital realm to shop for and purchase products and services. Around that same time, Visa introduced 3-D Secure, a set of messaging protocols designed to introduce an additional layer of security into digital transactions.
Since then, digital commerce has become ubiquitous, with more consumers than ever before using the internet, whether through a desktop browser, a mobile phone or another device, to shop for products and services. Up until recently, this evolution hadn’t spurred an update to the original, existing 3-D Secure protocols.
The protocols were updated and released in October 2016 and EMV® 3-D Secure (EMV 3DS) was born. While these protocols have been updated to reflect various changes in the digital commerce space, many of the changes they are expected to enact can help solve the online fraud problem.
EMV 3DS is going to facilitate the adoption of biometrics, a new authentication method, and even richer data-sharing with issuers, both of which will help alleviate concerns that merchants have had about fraud in the past.
Through this enhanced data sharing process, issuers and merchants will have a better idea of who’s a legitimate consumer and who’s a fraudster, which will enable the issuer to make authentication decisions that will approve more legitimate transactions and reduce the number of fraudulent transactions that pass through the system.
Additionally, using biometrics as an authentication method will make it nearly impossible for fraudsters to infiltrate a consumer’s account or complete a purchase on behalf of a consumer, since they won’t have access to the consumer’s biometric information.
In this new environment, Cardinal is uniquely positioned to help both issuers and merchants succeed. With visibility into both sides of the transaction, Cardinal can create a better, more efficient authentication process, resulting in more good orders for merchants and better risk decisioning for issuers. In the end, consumers will benefit, in the form of a seamless transaction experience.
EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.