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3D Secure 2.0: Be Ready to Make It Work to Your Advantage

Now that Mastercard and Visa have announced activation dates for 3-D Secure 2.0, it’s time for card issuers and issuing processors to ensure all the groundwork has been laid to take full advantage of the changes the updated standard will bring. At RSA, we’re doing our part by working to educate card issuers and processors on how to be prepared, as well as collaborating with industry partners to test transaction flows ahead of activation. If you’re an issuer, you should have been notified recently with the updated activation dates.  Your part means being ready with the technology and processes to accommodate the changes that are in store—especially the shift in fraud liability from merchants to issuers.

The Challenge: Card-Not-Present Fraud Growing—and Liability Shifting
One of the major differences between the first release of the 3-D Secure specification and the 2.0 version is that 3-D Secure 2.0 supports additional channels for card-not-present (CNP) transactions, including in-app and digital wallet payments. As we know, mobile transactions have grown dramatically over the last decade, and now account for nearly half of all CNP transactions. We’ve seen other channels expanding as well, such as smart devices and the growth of Internet of Things (IoT).  As 3-D Secure 2.0 expands into these channels, it brings with it the ability for issuers to assess risk for their cardholders outside of traditional browser-based transactions, but also introduces more fraud liability.

An October 2018 report from the U.S. Federal Reserve (Read more...)

*** This is a Security Bloggers Network syndicated blog from RSA Blog authored by Michael O'Connor. Read the original post at: http://www.rsa.com/en-us/blog/2018-11/3d-secure-2-be-ready-to-make-it-work-to-your-advantage.html