Conductor, one of Brazil’s largest card processors, has chosen TAS Group’s 3D Secure ACS cardholder authentication solution to help its Issuing customers tackle online fraud.
The SaaS solution, to be hosted by TAS Group at its data centre in Sophia Antipolis in France, will go live in October this year, just in time for MasterCard’s 3D Secure (3DS) rollout deadline. In a move to reduce online fraud in Latin America and ensure safer online payments, MasterCard is enforcing its 3DS program in Brazil from October 2018 by introducing higher transaction fees for Issuers and Acquirers who fail to comply.
The motivation behind the Network’s tough stance is clear. Latin America is one of the fastest growing e-commerce markets in the world, with sales expected to reach 85 billion US$ by 2019 according to eMarketer. However, this rapid rise in e-commerce goes hand-in-hand with higher fraud rates. Brazil, in fact, has one of the highest online fraud rates on a global scale, and this is growing at a rate of 14% year on year. This poses a major challenge for Merchants and Issuers alike, making it critical for businesses to put effective fraud management strategies in place.
Yet, with consumers buying more and more goods and services online, increasingly with their mobile devices, there is a pressure on both Issuers and Merchants to meet this growing demand for e-commerce, while at the same time mitigating the associated fraud risk. It’s a fine balancing act.
Responding to this pressing need for secure online payments, Conductor turned to TAS Group, market leader in payments technology and card management solutions for over 30 years. With its leading-edge ACS 3DS technology (based on both 1.0 and 2.0 protocols), TAS Group is helping Conductor provide its Issuers with an effective way to reduce fraud for Card Not Present (CNP) transactions, while enabling a fast, secure and frictionless payment experience for the end-user.
The solution (part of TAS Group’s Cashless 3.0® Suite), manages cardholder authentication during online transactions via its Access Control Server and allows a seamless transition to the new 3DS 2.0 protocol. This new, richly enhanced EMV protocolreflects not only current but also future market requirements, supporting app-based authentication and integration with digital wallets, as well as traditional browser-based e-commerce transactions. In line with the PSD2 requirement for Secure Customer Authentication (SCA), customers can choose from the latest biometric authentication methods.
“Conductor was looking for a strong card authentication solution to enable secure online transactions for its customers. By deploying our latest ACS 3DS technology, they are able to satisfy an ever-growing demand for e-commerce while keeping fraud in check and offer a better user experience. TAS Group is committed to delivering enabling solutions that put the customer in control, ready to meet today’s challenges and thrive in the rapidly evolving payments market”, explained Andrea Bianchi, Senior Vice President International Sales of TAS Group.
TAS Group considers Brazil an important market and has been operating 3DS for Banco Daycoval and Banco Original there for the last three years. As digital commerce in Latin America continues to grow across the various channels, businesses with optimised fraud management strategies will be able to take advantage of these growing opportunities while mitigating fraud risk. Having a robust 3DS solution in place is a fundamental step in successfully managing this delicate balancing act, tipping the scales firmly back in the banks’ favour.