Tackling PSD2 and 3DS challenges

Cooperation with INFORM to balance convenience & security

Netcetera and INFORM are bringing merchants, acquirers, and card issuers up to speed with the latest developments in the payment ecosystem. Combining RiskShield by INFORM with Netcetera’s 3-D Secure products has proven to be a winning recipe. In fact, 16 financial institutions have already been successfully equipped with a joint solution that ensures compliance with new regulations and reduces e-commerce shopping friction. A recent implementation for VISECA Card Services SA attests to the success of this cooperation.

Initially, compliance with the second iteration of the Payment Service Directive (PSD2) was required by September 2019. However, implementing the associated regulations relating to Strong Customer Authentication (SCA) for e-commerce payments has proven more challenging than POS transactions. Therefore, a new deadline for compliance regarding SCA for e-commerce has been set for December 31, 2020. This extension provides all players involved in the payments ecosystem with more time to equip themselves to comply with the new regulations.

“Some of the main exemptions for SCA include recurring transactions, low value transactions and transaction risk analysis,” states Roy Prayikulam, Senior Vice President Risk & Fraud at INFORM. “Our main focus lies within the transaction risk analysis. With RiskShield’s Risk Based Authentication tool, we can assess the level of risk for transactions in milliseconds and suggest the appropriate response. High risk levels indicate the need for a step-up flow which requires an SCA input from the cardholder,” adds Prayikulam.

Using the new 3-D Secure protocol developed by the card schemes and EMVCo, merchants can meet the new, more rigorous technical standards. However, SCA is often associated with transactional friction, as the two-factor authentication process can prove frustrating for online shoppers, which often leads to abandoned shopping carts.

Netcetera is helping merchants and issuers across the globe fulfill the technical requirements of card schemes and the PSD2 regulations with its 3-D Secure product suite. “With our independent 3-D Secure products covering the entire payment ecosystem, we are always among the first to be certified and ensure that our customers are compliant with all major schemes and with the latest protocols. By adding RiskShield’s Risk Based Authentication to our offering, we are able to provide the ultimate balance of security and convenience,” states Roger Burkhardt, Senior Product Manager at Netcetera.

Santosh Ritter, Head of Operations Risk Management at VISECA Card Services SA states, “These technologies work extremely well together, and enable a smooth, reliable and secure processing and authentication of online transactions.” VISECA Card Services SA has had both solutions in place since November 2019. “The implementation of both products was efficient, and we are happy with the convenience that is being offered to our customers,” concludes Santosh Ritter.

Anyone interested in finding out more about the cooperation between INFORM and Netcetera can attend an upcoming webinar on September 2, titled “Balancing Security and Convenience in E-Commerce Transactions”. Click here for more details and to sign up for the event.

Speak to our expert:

Roger Burkhardt

Principal Consultant of Secure Digital Payments at Netcetera

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