|[September 24, 2013]
Issuers Look to Battle EMV-Driven Online Fraud as EMV Dates Approach, According to Acculynk
ATLANTA --(Business Wire)--
With the EMV deadline for liability shift some 500 days away, Issuers
and Merchants are grappling with the question of how to protect against
the projected increase in card not present (CNP) fraud.
Historically, as EMV rolled out in market after market, fraud migrated
so quickly and aggressively to the online environment, overall card
fraud actually increased within 2 to 3 years of EMV introduction into
the market. This trend is apparent well before a country fully adopts
EMV. While overall fraud in most EMV countries has since stabilized at
somewhat lower rates than pre-EMV, EMV clearly drives fraud to the
With the Durbin amendment back in the news again, issuers are wrestling
again with uncertainty around debit. While many aspects of EMV are
uncertain, especially after the recent Durbin ruling and appeal, what is
clear is that EMV history does not have to repeat itself.
A leader in online debit transaction authentication, Atlanta-based
Acculynk's Ashish Bahl outlines and addresses three important topics
issuers must consider as EMV moves forward.
1) Are FIs willing to combat online fraud with experimental
authentication methods, given the uncertainty looming over payments due
While it wasn't always the case, the idea of a layered approach to
security and authentication is now considered conventional wisdom. The
same perspective shift is happening now. As industry participants weigh
online fraud reduction methods, we are hearing from Issuers that a new
'timeline view' is also taking shape. Rather than kicking off expensive
experiments with untried authentication methods in the early stages of
EMV, Issuers are looking at solutions from a near term and long term
perspective. With Durbin changes looming and the prospect of further
squeezing of transaction margins, Issuers may not have the option to
lose transactions due to consumer adoption concerns. The question of
"How to authenticate now?" is forcing Issuers o immediately look at
in-market, scaled solutions rather than experimenting with un-scaled
options, such as biometrics, which have failed in the past.
2) Should Issuers be worried about consumer reaction to their
CNP authentication choice?
There is a reason merchants obsess over every aspect of their checkout.
In markets outside the US where EMV has been deployed, attempts to stem
escalating online fraud by adding authentication layers to e-commerce
simply failed, even when mandated, because they added increased friction
during checkout, leading to lack of consumer and merchant adoption.
Changes at the POS (point of sale) will be confusing enough for
consumers. Issuers have good options to keep online simple and yet
3) Can Issuers make their authentication choice without
considering merchant impact?
EMV is the mother of all implementations, requiring Issuers to think
through complicated use cases and make decisions with long term impacts.
Covering their CNP risk should not further increase the cost and
complexity of their EMV progress. Issuers are looking for authentication
providers with solutions that can be strengthened and customized without
requiring change and investment from their merchant partners or
expensive deployments on their part. We have a very good example of what
happened in Europe with 3D Secure. Issuers thought it would work, but it
was expensive and frustrating on the merchant side and, not
surprisingly, it never scaled.
PaySecure, the Acculynk online PIN pad, is embedded in the merchant
check-out process, providing consumers a familiar one-step process.
Unlike previous attempts at user authentication, PaySecure does not have
to be deployed customer by customer. Millions of customers can be
enabled with a single merchant implementation.
Over the past four years, the PaySecure PIN pad has achieved significant
consumer adoption that continues to drive overall market adoption. Over
150 million consumers have been enabled through their debit card issuer
to use PIN debit online. When presented with an online PIN pad at
checkout, consumers choose to enter their PIN more than 62 percent of
Offering a clear case to issuers for online PIN debit, "How
Internet PIN Debit Can Change the EMV Game" is the just released
white paper from Acculynk.
Acculynk secures online transactions with a suite of software-only
services backed by a patented authentication and encryption framework
that provides greater security for issuers, EFT networks, merchants and
payment processors. Acculynk's PaySecure® utilizes a graphical PIN-pad
for the secure entry of a consumer's PIN online and is available to
merchants through existing acquirer relationships, enabling speedy
implementation. PaySecure is currently enabled on over 6,000 merchant
websites. Acculynk has partnerships with 11 EFT networks to process
PaySecure transactions and with six leading payment processors, and is
certified with PULSE, First Data and Master Card, among other key
industry leaders. Additionally, Acculynk solutions include PayLeap, a
gateway and acquiring and card processing services, and Payzur, a
debit-based P2P solution. Visit http://www.acculynk.com.
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