Elavon has announced a partnership with Featurespace to help tackle fraud attacks in real-time and simplify the online payments experience for customers. With the use of Featurespace’s ARIC Platform, Elavon is developing a fraud network to detect fraudulent activity using adaptive behavioural analytics.
Elavon’s fraud network comes as Europe prepares for the second Payments Services Directive (PSD2) that requires Strong Customer Authentication (SCA) to have affect from September 2019. PSD2 will compel processors, merchants and banks to adopt more effective security checks for online payments in order to reduce card fraud in Europe.
According to a report published by the European Central Bank, Card-Not-Present fraud made up 73% of all card fraud in Europe. Two-factor authentication will be compulsory for all eCommerce transactions above €30, unless an acquirer exempts the payment from additional authentication with the issuer.
Elavon’s network detects instances of fraud to help mitigate the need for additional security checks, which can make the online shopping experience more complicated. Research from Elavon’s report, “Pocket Shoppers: eCommerce on the Move” found that two-thirds of consumers will abandon an online purchase if the process is too difficult, leading to a higher rate of cart abandonment.
Combining the Featurespace ARIC platform and Elavon’s 3DS service enables merchants to use an advanced, layered approach to fraud prevention. The ARIC platform uses machine learning transaction monitoring to build individual behavioural profiles for cardholders and merchants in real-time. This system works to detect anomalies and prevent fraud across all payment methods and channels.
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