August 10, 2022

When consumers rushed into online shopping at the beginning of the pandemic, fraudsters were not far behind. In particular, the accelerated growth of eCommerce and related digital transactions such as curbside pickup and grocery delivery has spurred a corresponding explosion of card-not-present (CNP) fraud.

The problem is, as issuers moved to eliminate that fraud, they were also generating a lot of false declines — meaning good customers were being blocked due to heightened fears that fraud might be happening.

“In this type of tough environment, merchants are really looking for a solution that can help them improve their authorization rate while also reducing fraud,” Yueming Wang, director of North America risk products at Visa, told PYMNTS.

Enabling Real-Time Data Collaboration

Merchants have found that the latest version of the ‘Three Domain Server,” or EMV 3-D Secure (3DS) authentication, is a particularly effective tool. As a result, Visa has seen more than two billion EMV 3DS authentication transactions globally since the start of 2021.

3DS gathers the digital identity elements a consumer has when they are transacting online, as well as more information about that checkout process. This information then enhances the risk scores of transactions. When a transaction is identified as low risk, the consumer is not prompted to provide any additional information. For higher-risk transactions, seamless steps are taken for additional verification to prevent…

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