Payments Blog

A Financial Institution's Guide to Consumer Authentication Tips for Success

 Making sure you keep the crooks away is important, but ensuring your consumers a seamless check out is just as important. Your loyal and routine consumers will appreciate Cardinal Consumer Authentication because of the improved authorizations, and no one wants to turn away a good consumer. Cardinal’s Consumer Authentication provides a consumer centric shopping experience. Managing consumer friction during checkout = increased sales, and no one likes to turn away good consumers. Everyone wins, the bank authorizes more transactions, the merchant accepts more orders, the consumer gets the product and the crooks lose! 


If your financial institution is deploying Consumer Authentication to protect your cardholders’ card-not-present transactions (CNP), here are some real-world tips to help your experience run smoothly.
  1. Create your business case. Know what your current CNP fraud stats are, as well as other Key Performance Indicators (KPIs) and trends. Knowing where you are will help you define success. Some KPIs to consider are historic chargeback data, risk thresholds, risk evaluation criteria, regional Consumer Authentication mandates and authentication’s impact on authorization rates.
  2. Keep all your stakeholders in the loop. Make sure internal teams understand what is going to happen, what the benefits are to the bank and to your cardholders, and what the timeline is. Involve your marketing/communications partners so they can help craft consumer-facing materials, such as consumer-facing screens or informative messages letting your cardholders and colleagues know about the changes taking place and what they will experience.
  3. Thoroughly review your current process before adding Consumer Authentication. Make sure you address any existing issues, communication endpoints, security needs and errors before adding another layer of complexity.
  4. Take advantage of your provider’s knowledge and experience. They do this every day. You do it once. Ask questions, have them explain the process, read the documentation they provide, and ask more questions … then ask those questions again if you need to.
  5. Understand and evaluate all Risk-Based Authentication Data prior to launching. The more data you are able to collect and provide into Consumer Authentication risk engines, the more effective and accurate the risk assessment for Consumer Authentication will be.
  6. Be aware of how your Risk-Based Consumer Authentication platform will interact with your authorization system. Check with your provider – again, they do this every day. They can counsel you on what data can or should be shared with your authorization system, and how your system should respond to Consumer Authentication-specific data elements.

Stay tuned for next week’s blog to learn a few more tricks of the trade for banks implementing a Consumer Authentication solution. Cardinal is here to help FutureProof™ your business.


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

Dec 1, 2015 8:30:00 AM

Topics: Consumer Authentication

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