International Director: Combatting card-no-present fraud and secure customer authentication

8 January 2019

By David Orme, SVP, IDEX Biometrics

A ‘Card-Not-Present’ transaction is when a payment is made without a cardholder physically presenting their card to the merchant. Historically these sorts of payments have been used effectively for mail and telephone orders, but now they are used more typically to complete online orders, such as e-commerce and m-commerce (In App[1]).

However, Card-Not-Present transactions are the biggest routes to card fraud, as this form of payment presents a specific challenge to retailers in being able to verify who the actual cardholder is, and consequently being able to authenticate their payment effectively.

The introduction of EMV (Europay, MasterCard and Visa standards) chip and pin brought enhanced authentication and cardholder verification for payment cards, which enabled a decline in Card-Present fraud. As a result, fraudsters have migrated to Card-Not-Present routes of attack, particularly for e-commerce and m-commerce transactions.

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