Today, in pretty much any field, data is an import ingredient. In the digital payments industry, data has been crucial for some time now, especially when it comes to assessing the risk of digital transactions. But in the past, there was a disconnect and a lack of communication between the main stakeholders involved in a digital transaction: the issuer and the merchant.
The issuer, trying to make informed decisions regarding these transactions, only had access to a limited number of data points. In trying to assess the risk of certain transactions, the issuer would often turn away legitimate consumers, an act commonly referred to as a false decline. While this clearly wasn’t done intentionally, it irked the merchant and, of course, the consumer. When two out of the three parties involved in a digital transaction are unhappy, something needs to change.
Enter EMV® 3-D Secure (3DS), previously referred to as 3-D Secure 2.0. These new 3-D Secure specifications were handed down in October 2016 and have been updated several times since then, to reflect changes in the industry.
One of, if not the biggest change that EMV 3DS is enacting is issuer access to more, and better data points. With this new protocol, the merchant can now share a lot more data elements with the issuer, giving that issuer the ability to make better risk decisions when it comes to potentially fraudulent transactions.
Previously, the issuers only had access to limited transaction information and the consumer’s card information when assessing the riskiness of any given transaction. While this might seem sufficient, in a lot of cases, it’s not. Under this new protocol, the issuer will be equipped with device and item data, along with shipping and billing information. The addition of these data points will help the issuer create a more robust risk assessment, which will, in turn, result in fewer false declines and happier merchants and consumers.
Since the release of these specifications in 2016, Cardinal has been working to prepare all our solutions for this new, data-driven world with EMV 3DS. For years before that, we were dedicated to authentication, and helping bridge the information gap between issuers and merchants, to help authenticate as many legitimate consumers as possible, while keeping cybercriminals at bay.
Today, we remain focused on providing the best possible authentication network, which we have been able to do through constant innovation and hard work. We have been delivering results with the Cardinal Authentication Network, and we will continue to do so because the Cardinal Authentication Network puts Authentication First.