In the last few years, EMV® 3-D Secure (commonly known as 3-D Secure 2.0) has become the future of online payment authentication. Those in the digital payments industry should be excited about the opportunities it will create for the entire industry in the near future.
EMV 3DS is a much improved version of traditional 3-D Secure that can enable new payment channels, like native applications. This new protocol can provide an improved consumer experience during authentication by using new, better data during this process. We have been carefully planning for this change in the industry for many years.
As a result, our platforms can also offer merchants and issuers the opportunity to share transaction insights in the authorization flow. This will have an outsized impact on risk decisioning for authentication, as well as for risk decisioning during authorization.
This has yielded excellent results for some of our merchants. In the Luxury Goods Industry, for example, the average authorization rate is 88 percent, however, merchants in this field have seen a 5 percent authorization lift when they use 3-D Secure. This is a significant increase that can make a huge difference for a lot of merchants.
All of this should be very exciting for merchants, issuers, consumers and many others in the digital commerce world. This development should open new doors for all these parties, however, some of the details with EMV 3-D Secure can get a bit complicated, specifically as it relates to onboarding, which is the beginning of the entire process. But don’t worry, we can help!
First, in order to participate in EMV 3-D Secure, merchants and acquirers must work with an EMV 3DS compliant 3DS Server (formerly MPI) for browser authentication and an SDK provider for in-app authentication. This is a mandatory requirement. Cardinal Consumer Authentication (CCA) is fully compliant and can seamlessly offer these capabilities for all merchants and acquirers. We will be there every step of the way to help guide you through this process, and to help you to define your new authentication strategy.
Below are some steps that merchants and acquirers can follow to onboard on to EMV 3-D Secure. If these seem complicated and confusing, don’t worry. We can help ensure that everything goes smoothly through the entire process.
- Integrate to one of our four hosted solution connections. We have several different integration options, all of which can support your needs in the digital space. The integration options are as follows:
- Cardinal Cruise Hybrid
- Cardinal Cruise API
- Cardinal Mobile SDK for Android or iOS
To discuss which integration option is right for you, contact us and we can help you decide.
- Configure your business for EMV 3DS by defining your rollout strategy. Defining your EMV 3DS rollout strategy includes a couple different things, including:
- Creating your risk-rule strategy for transaction
- Identifying data points that can help you determine if you will request Data Only or Authentication products
- We can explain what the difference is, and the benefit to each approach
- Reviewing solution design for domestic and international transactions. With this step, keep in mind that you may need to adhere to regional mandates.
Remember, we can help you figure out what is right for you and your company.
- Register with the Networks. Every network is a little different, which means they all require slightly different steps to onboard merchants into their Directory Servers. Our goal is to make this process as easy as possible for you. The available networks are Visa, Mastercard, American Express, Discover/Diners, JCB, Cartes Bancaires and UnionPay International. To effectively begin this step, provide one of our implementation managers with the following information:
- Merchant Business Name, Web URL, Merchant Country Code, Business Address and Merchant Category Code (this may differ by network)
- Acquiring Details: Acquiring Merchant ID, Acquiring BINs (6 Digits)
- Test and Launch. After you’ve completed all the steps listed above, one of our implementation managers will work with you to schedule staging and production testing, and to plan your program launch.
These are the steps you need to take to onboard to Cardinal Consumer Authentication (CCA). This might seem like a lot of work but we can help ensure that it all goes smoothly.
Are you ready for the transition to EMV 3DS?
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.