Trusted Transactions | Entersekt Blog

Trusted Transactions | Entersekt Blog

What’s behind the brisk growth of risk-based authentication?

Posted by Jolette Roodt, Writer/Analyst, Entersekt

Apr 25, 2017 10:00:00 AM

The move to chip cards in the United States has been touted as the trigger for the movement of fraud from card-present to card-not-present channels. The country’s dominant approach to combating this type of fraud is risk-based authentication. Is this because it has proven to be successful in preventing fraud, or is risk-based authentication’s attractiveness based on other considerations?

 

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

P2P payment apps are taking over the world

Posted by Clara Chennells, Copywriter

Mar 28, 2017 8:00:00 AM

In the last few years, uptake of personal payment applications has been shaking up the world of fintech. US-based digital wallet Venmo, one of the fastest-growing apps in this realm, is changing the way we think about person-to-person (P2P) payments. Venmo is used mainly to make small payments between people who know each other, and it appears to be highly effective in eliminating small – albeit pesky – lingering debt between friends, family members and others who struggle to follow through on IOUs. On the face of it, Venmo seems like nothing more than a variation of PayPal (which, incidentally, owns Venmo). So what sets Venmo apart, and why are millennials flocking to it with such enthusiasm?

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Topics: Card-not-present authentication, User experience

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suspicious transactions (for example, refusing transactions that have conflicting billing and shipping addresses or out-of-date card information).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

Will a cashless society be the future?

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

Jun 9, 2016 2:39:59 PM

Sweden has often been quick to use new technologies to power cultural and social development. Spotify, founded in Sweden in 2006, embraced streaming technology as a business model and is considered to be one of the world leaders in music distribution today. In the gaming world, a Swedish company named King developed the immensely popular Candy Crush app. It has since become a global leader in social gaming.

It goes without saying that innovative virtual services such as streaming music or gaming rely on accessible, convenient electronic payment systems. Perhaps that is why Swedish banks and other service providers have been so innovative in exploring cutting-edge payment alternatives.

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Topics: Card-not-present authentication, Cards, Privacy

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

Lessons learned from early EMV deployments

Posted by Entersekt

Apr 16, 2015 9:30:00 AM

Payment_networksEMV has now been deployed in more than 80 countries around the world. All have seen a significant drop in card-present fraud as a result, but they have also experienced a surge in online card fraud and other card-not-present (CNP) scams.

The payments industry has learned a lot from the first global implementations of EMV technology. The most important one being that EMV is not yet able to protect consumers in the online space. Early adopters of EMV have also found that security measures aimed at heading off rising CNP fraud can disrupt the online purchasing process to the point that cardholders abandon their virtual shopping carts in droves.

Payment card leaders recognized that CNP fraud was likely to rise significantly as e-commerce took off. They sought to address the threat with 3-D Secure. This security protocol was designed to introduce transaction authorization in the online space by means of an online user authentication process, much like a signature or entering a PIN number is meant to do in the real world.

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Topics: Card-not-present authentication, EMV

“Simply safe” at Swisscard

Posted by Altus van Tonder, VP sales support Europe, Entersekt

Aug 25, 2014 5:00:00 PM

Altus_van_Tonder

For those who don’t know the company, allow me to introduce Swisscard AECS, a fantastic group of people that my team has worked with closely over the last year. Based in Horgen, just outside Zurich, Swisscard is the only company in Switzerland to offer American Express, MasterCard, and Visa credit cards from a single source, doing so on behalf of Credit Suisse AG.

Earlier this month, with Entersekt systems architect Dan Wells on hand, Swisscard launched a new card-not-present authentication system, powered by Entersekt’s mobile application, Transakt. Now, instead of entering a static password, cardholders have the option of authorizing their 3-D Secure–protected purchases using their mobile phones. 

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Topics: Card-not-present authentication, Entersekt customers

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

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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