Posts

The further development of token security, what’s next?

Recently, the payments industry received news that Visa and Mastercard are teaming up to share tokenised credentials across their digital wallets (Masterpass and Visa Checkout). With the objective of making their wallets thrive, both schemes have committed to making them open and interoperable and to support multiple modes of use for consumers, e.g. in-app, online and in-store.

The move into a more collaborative and integrated payments industry is no doubt a good example for others members of the ecosystem. Championing new ideas and best practice to help mobile commerce grow, develop and become more secure in the industry should be celebrated.

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Fight false declines and beat Black Friday blues

Black Friday is one of the biggest shopping events in the calendar but recent research suggests false declines could be harming merchant profits, especially at such sales boom times[1].

A false decline is when a merchant or issuer security systems flags a non-fraudulent transaction as fraudulent and, thus, refuses it.

The value of false declines per year now stands at $118bn and this is more than 13 times the $9bn lost annually to card fraud[2]. It has been estimated that one in six cardholders experienced a false decline because of (incorrectly) suspected fraud[3].

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Getting automated payments under control

The digitisation of our commercial lives has brought us new levels of convenience. Banking can be done on a phone app with no need to queue in-store, credit card bills can be paid online, train tickets bought on a phone and much, much more. Yet, this convenience can also come with ongoing obligations.

Recurring payments, for example, are a source of regular frustration for many consumers. Known, technically as Continuous Payment Authorities (CPAs) these agreements allow companies to take money from you in exchange for providing a service, such as subscription to an online service.

They appear to be just like Direct Debits but while Direct Debits take money from your bank account, CPAs take money from a payment card. While they are still subject to oversight by the FCA, they do not have the same set of rigorous consumer protection guarantees that Direct Debits do, such as ease of cancellation, compensation and refund, in the case of error.

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