Issuers need to balance eCommerce payment transaction security and a smooth customer checkout experience. The crux of the matter is how to provide a seamless checkout experience for legitimate customers so they won’t abandon their transaction or use a different form of payment while at the same time stopping illegitimate attempts to transact. The use of behavior-based authentication to determine which transactions should be impacted by requiring the customer to go through additional means of authentication is critical for reducing customer friction while creating better assurance that the transaction is legitimate. Rules are an important component when providing this risk- and behavior-based authentication. When models are added, and used to guide the application of risk-based rules, the impact upon illegitimate authentication attempts can be greatly increased while the impact on legitimate customers is decreased, providing a better experience for the cardholder and loss reduction for
The explosive growth of eCommerce has focused attention on security concerns associated with online payment transactions. Cardholders worry about the safety of online transactions while card issuers are concerned about balancing the risks and costs of payment fraud with a loss of revenue caused by transaction abandonment. The 3-D Secure protocol allows payment card issuers to reduce fraud in payment transactions by verifying cardholder identity during Card Not Present (CNP) transactions. Before a transaction is authorized, a cardholder can be challenged to enter a password, answer a question, or use some other form of authentication credential. This interruption in the transaction often causes legitimate customers to abandon the purchase resulting in loss of revenue for the issuer. The challenge is how to reduce fraud without impacting the user purchase experience.