Balancing Security & Compliance with Customer Experience: an eBook preview

Balancing Security & Compliance with Customer Experience: an eBook preview

August 8, 2019

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The online payments industry is evolving more rapidly than ever. New technologies are improving business processes and creating a better experience for customers, but those same innovations are also enabling new types of fraud. And, as concerns about consumer privacy grow, regulations such as the General Data Protection Regulation (GDPR) and Revised Payment Service Directive (PSD2) are adding to the complexity of the payments ecosystem.

The goal is to create a stronger, more secure payment environment that thwarts cybercrime while making the customer experience more seamless than ever. But navigating the ever-changing landscape is a challenge, and missteps can be costly. 

Scams and complaints to banks about fraud increased by 43 percent in 2017, and in the United States, 80 percent of organizations have seen online fraud losses increase from 2017 to 2018. 

Even with that in mind, companies in the payments ecosystem can’t merely focus on reducing risk if they want to thrive. 

The key to improving customer experience while mitigating risk and complying with the newfound regulatory environment is in a layered approach to identity verification during pre-authorization screening. 

Merchants need to be proactive, rather than reactive.

Post-authorization identity checks have traditionally been the way merchants verified customer identity. The benefit is in allowing transactions to happen with less friction on the consumer end, but the downside is that it opens the door to chargebacks, account takeover, and other types of fraud. 

Additionally, the strong customer authentication (SCA) requirements of PSD2 mean merchants can no longer rely on post-authentication fraud checks to separate the fraudsters from legitimate customers. They need to be certain of a customer’s identity before the transaction goes through.

Technology that enables fraudsters can also enable businesses. Leveraging artificial intelligence, machine learning, and third-party data sources can help companies link digital identity back to the human behind the transaction—before the authorization. 

In our ebook, The Value of Pre-Authorization Screening in the Payments Ecosystem, we explain why this shift is happening, and give you the tools you need to meet these challenges head-on.

  • Section one describes the changing landscape of the payments ecosystem, from its inception to how today’s current spread of global regulations are impacting all aspects. 
  • Section two explores how the evolved payments ecosystem impacts each stakeholder, including customers, merchants, merchant acquirers/payment service providers, and issuers. 
  • Section three outlines the challenges for the online payments ecosystem, including cross-border transactions, false declines, and a lack of technical readiness.
  • Section four provides practical advice for navigating the landscape to create a better online payments ecosystem for today and tomorrow. 

The payments industry is in the midst of a pivotal time, and companies that are able to meet the twin challenges of fraud mitigation and customer experience will thrive. 

Download The Value of Pre-Authorization Screening in the Payments Ecosystem of Today now to learn how.

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