EMV security standard by both card issuers and merchants is expanding rapidly in the U.S., making counterfeit card fraud at the physical point of sale much more difficult to perpetrate. These two market changes are causing fraud to shift to the card-not-present environment.
Mercator Advisory Group’s new research note, Debit and 3-D Secure 2.0, provides background on the market shift toward e-commerce and m-commerce and discusses the enhancements of 3-D Secure 2.0, particularly improvements to the cardholder experience.
Mercator says card issuers now need to turn their attention to card-not-present losses and the new version of 3-D Secure to counter the assault. The 2.0 solution is much improved from the initial version and an important part of an overall cardholder verification strategy. Although debit doesn’t experience as much fraud volume as credit, it is critical to incorporate tools like 3-D Secure 2.0 in consideration of the disruption that debit card fraud can create for an account holder.
Highlights of the research note include: Estimates for e-commerce and m-commerce in the U.S.; Debit card-not-present volumes and fraud levels; and a high-level process flow of a 3-D Secure 2.0 transaction.
Companies mentioned in this document include: EMVCo, MasterCard, Pay Pal, and Visa.
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