Payments Blog

EMV® 3-D Secure, Data & the False Decline Problem

For both merchants and issuing banks, false declines can do severe damage. In most cases, they are worse than fraud and can have longer-term effects. Solving the false declines problem, however, requires getting to the root of the issue at hand.

One of the reasons false declines have persisted for the last several years is the gap, in terms of meaningful data, between the merchant and the issuer. This has created a wedge between both parties, where one knows that a consumer is legitimate and the other doesn’t have enough data to confirm the legitimacy of that consumer. In the end, this results in a false decline, which leaves two out of the three participants in a transaction frustrated, often the consumer and the merchant. Fortunately, EMV® 3-D Secure (also referred to as 3-D Secure 2.0) is here to solve this problem.

Abstract high tech background with graphs and diagramsWith regards to false declines, the main improvement from EMV® 3-D Secure will be enhanced data-sharing. Empowered by these new protocols, merchants will have the ability to collect a lot of new data points, whether it be transaction data or device data, and pass it to the issuer. The issuer, in turn, will be armed with enough information to authenticate legitimate consumers during a transaction.

By bridging this data gap, EMV® 3-D Secure can help merchants and issuers get on the same page when it comes to authenticating their consumers, which will result in fewer false declines, more good orders and more revenue.

For some time now, Cardinal has been preparing for the inevitable shift to EMV® 3-D Secure. The Cardinal Authentication Network was conceived with this new, data-centric world in mind. For many years, Cardinal has been focused on offering the best possible authentication solution. Cardinal provides rules-based solutions for both merchants and issuers, to give them more control over this new data. With both improved control and visibility into this data, these solutions can help reduce the incidence of false declines and help increase revenue.

This intense focus over the years has created excellent results, with respect to this network. Going forward, due to a commitment to innovation, the Cardinal Authentication Network will continue to deliver for merchants and issuers.

With the Cardinal Authentication Network, Cardinal puts Authentication First.

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.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: False Declines, EMV 3-D Secure, Cardinal Authentication Network

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