Trusted Transactions | Entersekt Blog

Trusted Transactions | Entersekt Blog

Fraud-not-present: How false declines cost US merchants more than prevention

Posted by Jolette Roodt, Writer/Analyst, Entersekt

Sep 8, 2016 10:00:00 AM

A recent report by BI Intelligence found that, unsurprisingly, card-not-present fraud is rising in the US, now costing merchants 1.47 percent of their annual revenue (up from 0.51 percent in 2013). Card issuers, processors, and acquirers alike are enforcing increasingly strict rules for blocking suspicious transactions (for example, refusing transactions that have conflicting billing and shipping addresses or out-of-date card information).

 

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Topics: Card-not-present authentication, 3-D Secure, Card-not-present fraud

Are the payments networks stepping away from OTPs?

Posted by Jolette Roodt, Writer/Analyst, Entersekt

Jun 23, 2016 11:00:00 AM

The move towards two-factor authentication (2FA) is gaining momentum fast, with companies ranging from banks to social media platforms now offering the method as an extra security measure for protecting users’ personal information. The major payments networks are no exception. Even though specific authentication techniques can only be mandated by the card issuers themselves, MasterCard, Visa and American Express now all offer 2FA options, based on the 3-D Secure protocol, for identity verification in online credit and debit card transactions.

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Topics: Card-not-present authentication, 3-D Secure, One-time passwords, Entersekt customers

Looking ahead to authenticated collections

Posted by Schalk Nolte, Chief Executive Officer, Entersekt

May 19, 2016 11:00:00 AM

Direct debits are both an efficient and potentially frustrating means of payment for consumers, with high rates of abuse in many parts of the world. In South Africa, where this kind of payment is called a “debit order”, almost a million disputes are lodged every month. In a world-first, the South African Reserve Bank is introducing authenticated collections, a system that will disallow many direct debits that have not been electronically authenticated by consumers.

 

 

 

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Topics: 3-D Secure, Regulatory guidance, Authenticated Collections

Let’s talk mobile payments at Kartenkongress 2016

Posted by Claudius van der Meulen, VP business development / director Europe, Entersekt

Apr 21, 2016 11:00:00 AM

At next week’s EHI Kartenkongress (26–27 April in Bonn, Germany), a popular subject will be the maturing market in mobile payments. It’s a topic as relevant to European banks and card issuers as it has ever been, and it raises many interesting questions on how best to deliver convenient, secure mobile-based transacting.

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Topics: Card-not-present authentication, Mobile banking authentication, 3-D Secure, Events

Typical 3-D Secure implementations are not working — time to take it to the next level

Posted by Entersekt

May 15, 2014 3:00:00 PM

While we have established that 3-D Secure has proven beneficial to the industry by reducing fraud, lowering issuers’ operational costs and increasing card usage and retention, adoption of the standard is still being met with resistance from skeptics within the industry. Many wonder why this is the case, so let’s examine why many are still hesitant to fully adopt 3-D Secure and what the industry can do to solve these issues.  

The main problem is the cumbersome user experience of almost all 3-D Secure implementations, which frustrates consumers and raises merchants’ concerns that shoppers will abandon transactions. Typically, online shoppers are required to enter a password and, since this password is rarely used, it is often forgotten, which results in incomplete or abandoned transactions. While one-time passwords (OTPs) help solve this problem, they are also a hassle and prone to user error.

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Topics: Card-not-present authentication, 3-D Secure

How the 3-D Secure standard affects your financial institution

Posted by Entersekt

May 8, 2014 3:00:00 PM

The introduction of chip and PIN cards has significantly reduced cloning as a source of card fraud, particularly in Europe, but fraudsters, never idle for long, have switched their focus to a softer target – card-not-present online purchases. A few minor details on the credit card, which are all in plain sight, are all they need to make fraudulent transactions online. 

Historically, online card transactions have not required additional security layers, such as a PIN or signature. Without them, it has been nearly impossible to verify that the person making the transaction and entering the card information is legitimate. In addition, the absence of a signed transaction record has significantly increased rates of repudiated transactions.

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Topics: Card-not-present authentication, 3-D Secure

3-D Secure – Friend or Foe?

Posted by Dewald Nolte, SVP partnerships and alliances, Entersekt

Apr 17, 2014 3:00:00 PM

Dewald_NolteWhether they’re house burglars or cyber criminals, crooks tend to go for the easiest target, the proverbial lowest hanging fruit. With card-present fraud a greater challenge since the advent of EMV, fraudsters have retooled and set their sights on the tantalizingly low fruit of the digital world – card-not-present payments in particular. 

The credit card is the primary form of payment in the online world and, as such, it’s a very attractive target for the cyber criminal. What is more, the only information required to use a credit card online is the card number, expiration date and CVV number, all of which are in plain sight of anyone handling the physical card. Capturing these credentials, the fraudster grasps the keys to the online kingdom. 

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Topics: 3-D Secure

About Trusted Transactions

Trusted Transactions is Entersekt's blog devoted to keeping our customers, prospects and friends updated with industry news, security threats and technology advances in consumer authentication. We can protect against online banking fraud and account takeovers. Trusted Transactions brings you industry data and insights to help safeguard your online and mobile banking and payments transactions. 

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