Payments Blog

EMV for Financial Institutions: The Closed Loop Approach


In our last two blogs, we discussed EMV and how issuers can use a risk/rule-based approach to authenticate cardholders and increase authorization. In our final blog of the series, we will pull it all together with why financial institutions need Consumer Authentication.

Cardinal Consumer Authentication (CCA) is the right complement to EMV for CNP transactions.  Let’s see why…

Cardinal’s market growth in the merchant community creates an effective “collaborative approach”. There can be, in effect, data sharing between what the merchant understands about their consumers and transactions and what the issuer knows about their Customer / cardholder (KYC). Cardinal’s “collaborative” approach gives issuers and merchants unique insight for better decision-making in the CNP channel. With both sides of the transaction participating in CCA, merchants and issuers can gain an advantage for their shared consumer, to ensure the higher authorization yield without unnecessary checkout friction.

For example, merchants have a rich set of transaction data from their consumers to judge risk, including IP address data, bill to/ship address, phone number, device type, and device location. The issuer also has a rich data set, showing their cardholder’s purchase history and buying patterns. The results of these data points can and should be virtually shared between both ends of the transaction.

The more transactions that flow through CCA the greater the percentage of authorized transactions without unnecessary consumer friction.  Everybody wins, using CCA! The consumer gets to buy, the issuer authorizes more transactions, and the merchant sells more with less fraud!

To learn more about implementing Cardinal Consumer Authentication, contact us today.


Posted by Greg Esser

Greg Esser is currently fully responsible for Product and Sales Engineering for the Global Financial Institution Services Division, where he manages Technical Sales, market analysis and product enhancements across the issuing platform. With more than five years of industry experience, Greg has been a leader in many aspects of the Cardinal organization, spearheading inter-departmental and cross-functional groups tasked with evaluating and building solutions, direct merchant sales, global market services and the Management of Strategic Alliances. Greg’s sales mentality and product experience has played a key role in Cardinal's expansion in the global Card Not Present space. Greg has a B.S degree in Psychology from Heidelberg University.

Find me on: LinkedIn

Sep 22, 2015 8:30:00 AM

Topics: EMV

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