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The Fraud Practice and CardinalCommerce Kickoff the 3rd Annual Consumer Authentication Survey

Take the survey today to be entered in up to 5 drawings to win a new Apple Watch Sport™. The earlier you take the survey the more chances you have to win as a new drawing will be held each week.

The Fraud Practice and CardinalCommerce are proud to announce that the 3rd Annual Consumer Authentication Survey is now underway. Continuing with the success and momentum of the first two installments, the latest survey and coming 2016 report will continue to track the changing perceptions and trends around Consumer Authentication programs, how they are most successfully implemented and their impacts on chargebacks, risk management and the customer experience.

Please be sure to take the Consumer Authentication Survey this week. All who complete the survey will be entered in up to five drawings to win a brand new Apple Watch Sport™, and will additionally receive an advance copy of the Consumer Authentication Survey Report.

Take the Survey Today

More information about the Consumer Authentication Survey

 
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MasterCard Announces Identity Check, Which Will Support Biometric and SMS Authentication by 2016

MasterCard recently announced a new suite of authentication options for the online and mobile channel, branded MasterCard Identity Check, which will use various forms of biometrics and SMS one-time-passwords to authenticate card not present transactions. The service is expected to launch in the U.S. by mid-2016 with a global launch planned for the following year.

MasterCard Identity Check was announced in an early October press release from the card association, which also included results from a recent survey MasterCard commissioned asking consumers about password habits. The survey highlighted the frustrations consumers have with passwords and their inherent security risks, while MasterCard’s new Identity Check service seeks to address these problems.

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CNP Merchants Brace for Increased Fraud Post-EMV

A new study from Vesta and Javelin finds similarities and differences between merchants selling digital goods, physical goods or both when it comes to expectations for how fraud trends may change following the roll-out of EMV. More than half of all merchants worried about growing fraud cite EMV as a cause for this concern, but digital goods merchants are more likely to increase fraud and chargeback management spending over the next year relative to their counterparts.

Concerns around increasing fraud, and therefore risk and chargeback management spending, in a post-EMV world are certainly warranted. According to projections from Javelin, card fraud losses at the point-of-sale are expected to steadily decline from $6 billion in 2014 to $5 billion in 2018. Card Not Present channel fraud, however, is expected to nearly double from $10 billion to $19 billion over that same time frame.

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Dell to Acquire RSA Parent Company EMC for $67 Billion

Dell announced Monday they will be acquiring enterprise software, storage and security firm EMC in what will be the largest tech merger of all time at $67 billion. While the companies were competitors in the enterprise data server industry, EMC is also a major player in the risk space as the parent company of RSA, known for their SecurID two-factor authentication along with other risk detection and behavioral analysis solutions.

While Dell may be best known for their PC business they also offer enterprise data storage and security services. The acquisition of EMC will immediately bolster their place in this industry and will make the combined companies the third largest enterprise technology provider, behind only Hewlett-Packard and IBM in terms of revenue.

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The Fraud Practice Launches New Online Training Course to Help eCommerce Merchants Win More Chargeback Representments

Continuing to build on the more than 35 online training courses offered today, The Fraud Practice has released a new training course titled Successful Strategies for Chargeback Representment, now open for enrollment in our online training portal. Covering 60 different chargeback reason codes in about two hours of instruction time, this course explains the procedures and steps to follow from when a chargeback was received until it is reversed, including specific strategies for winning more disputes based on the chargeback reason.

Accompanying the latest addition to our online training catalog, The Fraud Practice is also launching the eCommerce Chargeback Professional certification, which marks the 10th CNP payment and risk certification track offered by The Fraud Practice. This new certification program expands on the existing eCommerce Chargeback Specialist certification, while those who have already earned this certification will be able to move up to the eCommerce Chargeback Professional for 50 percent off the already reduced certification upgrade cost.

For more information please see the:

Full Press Release

Successful Strategies for Chargeback Representment Course Information Page

eCommerce Chargeback Professional Certification Track Information Page

 
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Visa Updates to Chargeback Dispute Rules Regarding Compelling Evidence Take Effect in October

The world’s largest card brand announced the second phase of updates, new rights and options for merchants as it pertains to chargeback representment and compelling evidence. The concept of compelling evidence was first introduced in 2013 to expand the types of documentation merchants could use to dispute chargebacks, while the next phase of updates, which continue to focus on eCommerce and digital goods, will go into effect on October 17th.

Many merchants have October 1st marked on their calendars, the date when the EMV liability shift occurs in the United States, but October 17th is an important date as well.

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Card Issuer False Positives Represent $118 Billion in Lost Processing Volume

According to a recent study by Javelin Strategy & Research, issuers left $118 billion on the table last year by wrongly declining payment card transactions for suspicion of fraud, known as an ‘insult’ or false positive. Nearly 60 percent of these issuer false positives occurred at the physical point-of-sale and about two-thirds were for transactions total $100 or more.

Javelin’s study found that 15 percent of U.S. cardholders had at least one legitimate transaction declined at authorization by the card issuing bank in the past year, impacting about 33 million consumers attempting eCommerce, mobile or brick-and-mortar transactions.

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WorldPay Chooses IPO Over Multiple Buyout Bids

After announcing plans to take WorldPay public on the London Stock Exchange, Ingenico, Wirecard AG and a private equity consortium each made offers to acquire the business. French payment company and hardware manufacturer Ingenico even secured financing for a bid, rumored to be as much as £6.6 ($10.2) billion, but WorldPay turned down this and the other offers opting to secure public financing instead.

Spun off from RBS when a majority stake was purchased for $3 billion by private equity firms Advent and Bain Capital in 2010, WorldPay has enjoyed tremendous growth and success as a private company. Likely looking to collect the returns on their investment, the owners announced they would be publicly listing the company on the London Stock Exchange, but stop to consider offers from rival companies.

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In-Store Mobile Payments Forecasted to Reach $54 Billion by 2019, Online Mobile Payment Volume Will be Three Times Larger

Javelin estimates that the mobile payment volume for in-store purchases in the U.S. will grow more than tenfold, from $4 billion in 2014 to $54 billion in 2019. However, its mCommerce transactions, those made online either via mobile web browsers or apps, that dominate consumer mobile payments in the U.S. today, representing 95 percent of the total mobile payment volume. Although not growing as rapidly as mobile contactless payments, mCommerce is forecasted to more than double by 2019, when it will then make up three-quarters of the total U.S. mobile payment volume.

Mobile commerce is growing at a torrid pace as consumers in the U.S. and worldwide continue to spend more from their mobile devices, both online and in-store. When it comes to measuring the mobile payment volume it is important to differentiate in-store mobile contactless payments from online mCommerce, just as we track Customer Present and Customer Not Present payments separately. Javelin Strategy and Research estimates that the total U.S. consumer mobile payment volume reached $79.8 billion in 2014 and they forecast this to increase to $217.4 billion by 2019. However, online and multi-channel merchants should be taking a closer look to see how this breaks down for in-store versus mCommerce mobile payments, and also mobile browser versus app payments, to gain a more complete picture in terms of where to invest and allocate resources.

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Study Finds Significant In-App Theft and Click Fraud in the Mobile Channel

Examining millions of in-app transactions and billions of in-app clicks over the first five months of the year, a recent study from Apsalar estimated an in-app transaction fraud rate of nearly 7.5 for virtual goods and an in-app click fraud rate of more than 2.5 globally, meaning for every legitimate click or transaction there were this many that were fraudulent or unexplained.

Apsalar, an omni-channel data management platform, examined over 200 million in-app transactions for virtual goods and over 10 billion in-app clicks occurring between January and May 2015 for fraud. The study sought to quantify the level of click fraud in the mobile channel by measuring the click-to-install fraud rate and in-app purchase fraud rate across countries and worldwide.

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