MAP Newsletter - Winter 2024 - Flipbook - Page 5
ISSUE 58 | Winter 2024
Report: Fraud rates are three to
six times lower using 3-D Secure
Visa News
Visa faces antitrust lawsuit for Apple Pay. An Illinois mer-
As EMV chip cards continue to protect consumers and their in-store
transactions against fraud, organized crime rings have turned their sights
on e-commerce transactions. Credit unions that use 3-D Secure to help vet
online transactions in markets that require its use see fraud rates that are
three to six times lower than for all card-not-present (CPN) transactions.
That’s one finding from an Outseer-sponsored report completed by the
research and consulting firm Datos Insights.
The report also found that while U.S. CNP fraud losses, estimated to hit $9.2
billion in 2023, are projected to increase to $12.87 billion by 2026, use of the
advanced online fraud-prevention service is weak. 3-D Secure transaction
volume was up 20.5% from the first half of 2022 to the first half of 2023 in
the Americas, compared with 29.8% growth in Asia-Pacific and 27.1% in the
Europe, Middle East, and Africa region, according to Outseer data.
3-D Secure is a standard developed by EMVCo to counter online fraud. A
recent update to it provides a software-development kit to make it easier
to apply 3-D Secure to traditional and nontraditional channels and devices.
Member Access Processing offers Issuer Cardholder Authentication Service
(ICAS) as part of a multi-layered risk strategy mitigate CNP fraud. ICAS
authentication occurs prior to the Authorization and uses 3D Secure to
assess the risk of a transaction, in real-time, using predictive risk analysis
based on enhanced inputs, including device and transaction information
and consumer behaviors
The Outseer report interviewed fraud executives at 20 financial institutions,
including those in Australia, Canada, Germany, the United Kingdom, and the
United States. 3-D Secure is not required by regulators or card networks in
Canada or the United States. As expected, 3-D Secure use in North America
is low, averaging 2.7% of all CNP transactions..
chant has filed suit against Apple
Inc., Mastercard Inc., and Visa Inc., alleging their efforts to develop Apple
Pay prevented competition. The suit
specifically claims the agreements
among the three parties protected
“their anticompetitive market division by insulating their agreement
from competition.” Neither Apple, Mastercard, nor Visa had responded
to a Digital Transactions News inquiry by deadline. The complaint alleges
that, by the early 2010s, Apple was situated to enter the point-of-sale
network arena, but opted to work with the card brands instead of building its own network or using that of PayPal Holdings Inc. In exchange,
the two dominant card networks—Mastercard and Visa—would agree to
pay Apple fees for access to the network.
Visa Reduces Surcharge Cap. More than 10 years after Visa Inc.
wrote its rules permitting surcharging on its credit cards, surcharging
was enabled as part of a multibillion-dollar credit card interchange
settlement in 2013, the company reduced the cap on credit card
surcharges from a maximum of 4% to no more than 3% in 2023, The
move comes as Visa boosts enforcement of the cap. Surcharging is not
allowed on debit cards, though some government entities may collect a
convenience fee with either credit or debit cards. Visa rules allow either
surcharging or cash discounting.
Visa teams up with Red Bull Formula One. The Formula One
grid is charging into the 2024 season with
a new look and new support. Red Bull F1
Teams and Visa (NYSE: V) have announced an
unprecedented multi-year agreement where
Visa will become the first global partner
of both Red Bull F1 teams, bringing a new
look team to the F1 grid in the form of Visa
Cash App RB, formerly Scuderia AlphaTauri. Visa’s first new major global
sports sponsorship in more than 15 years, the agreement encompasses
the Visa Cash App RB team, corresponding title partnership on the F1
Academy team entry and the Oracle Red Bull Racing team. The Visa logo
appearing on both the Oracle Red Bull Racing and Visa Cash App RB cars
as well as the F1 Academy entries from the respective teams.
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