How to Select the Right EMV 3-D Secure Partner
The data generated by EMV 3DS can be a competitive advantage if you have a partner that can unlock it
EMV 3-D Secure (EMV 3DS) is the latest step in addressing the astounding rise in card not present (CNP) fraud, which Javelin Research says accounts for 81% of total fraud losses.
Created by EMVCo, the global body that manages the chip card specification, EMV 3DS should be widely adopted by both merchants and issuers in 2019. The new standard was created using extensive input from merchants, issuers, solution providers, and others and is a huge improvement in data sharing and customer experience in the battle to fight fraud.
Compared to the original 3DS protocol, EMV 3DS supports up to 10 times more data fields. This rich data creates a comprehensive picture of historical and recent transactions, with more data shared across issuers and merchants that supports better decisioning to decrease fraud rates as well as the number of false declines.
The Value-Added Difference of Advanced Analytics
Although all providers must adhere to the same specifications of the EMV 3DS protocol, not all providers are prepared to leverage the additional data available in innovative ways.
“As merchants work toward EMV 3DS enablement, they should look for a vendor well versed in the nuances of EMV 3DS,” advises Julie Conroy, research director for Retail Banking with Aite Group.
Consider the example of CA Technologies. As the world’s largest EMV 3DS provider, CA Technologies’ experience with EMV 3DS dates back to 1998. CA Technologies was one of the developers of the original 3DS 1.x protocol and remains active as a Technical Associate member of EMVCo. CA Technologies also processed the first next-generation EMV 3DS transactions through its production system in fall 2018.
Thanks to its long history with the technology—and its global network of EMV 3DS partners—CA Technologies has developed the expertise needed to take full advantage of EMV 3DS data. Most notably, the company has been a leader in neural network modelling and has invested heavily in data science and other advanced analysis to asses and utilize the wealth of data EMV 3DS generates. What’s more, the company integrates its own additional data—such as geolocation and transaction velocity—into these models to further enhance their performance.
CA Technologies’ data science platform focuses on the relationships between these data elements, learns from these relationships, and adapts to changing fraud patterns in real time. Over time, the more data gathered, the better the risk models and the better the decision making.
More Visibility, More Control
EMV 3DS supports data sharing between issuers and merchants to not only drive better transaction decisions, but to understand the variables that led to the decision. Notes James Jenkins, senior director of Solution Sales for CA Technologies, “The merchant and issuer share data to make a better fraud decision. Combine that information sharing with advanced analytics, and performance is dramatically enhanced.”
The merchant can use this data to decide whether to accept the issuer’s decision and shift liability or to accept the fraud risk based on its business model, policies, and risk tolerance. In short, the merchant has ultimate say over whether to do a step-up authentication on a transaction.
Less Customer Friction
Since merchant input helped drive EMV 3DS’s design, it’s no surprise that the customer experience was a key consideration. Now the authentication experience can be far easier and intuitive for customers.
“With EMV 3DS, we have been able to take the protocol to another level with enhanced screens and an enhanced browser experience that can be merchant branded,” explains Jenkins. “This is a game changer in terms of security and customer experience.”
Questions to Ask an EMV 3DS Provider
The sooner merchants move to EMV 3DS, the sooner they can benefit from less fraud and fewer false declines. But choosing a partner is critical to getting the most benefit. Here are some questions merchants should ask a potential EMV 3DS provider:
- Can you use risk-based decisioning to minimize authentication challenges to good customers?
- Can you configure your own rules and change them in real-time?
- Can you use the data to personalize the customer experience?
- Can you brand the solution?
- Is the solution scheme-agnostic, supporting data from all payment networks and card schemes?
- Does the solution support both EMV 3DS and non-EMV 3DS CNP transactions?
- Does the solution support in-app and mobile transactions?
- What additional tools and services does the solution provider have available to leverage EMV 3DS concomitant data and best practices?
Merchants everywhere want to reduce losses whenever possible, and with its richer cardholder and device data, EMV 3DS can help to achieve that goal. The protocol can also significantly reduce false declines and result in fewer authentication challenges.
But reducing fraud isn’t the only benefit of EMV 3DS. Working with an experienced provider allows merchants to extract and leverage this additional transaction data for other uses such as risk scoring and customer insights that can provide a significant competitive advantage.
About CA Technologies
CA Technologies, a Broadcom Company, is an industry leader in payment and identity fraud prevention, with friction-free transaction authentication powered by patented artificial intelligence. As a pioneer in data analytics for online fraud, CA delivers a unique 360-degree view of transactions for issuers, processors, and merchants, across all payment schemes. Learn more at
