Less than a quarter of 48 national retailers surveyed recently said they have implemented EMV technology. While the migration has turned out to be a marathon rather than a sprint, the impacts have been seen fairly quickly. As 2016 progresses, more CP (card-present) merchants will integrate card-chip compatible terminals into their POS (point-of-sale) systems. Although complete migration is expected to take up to seven years, CNP (card-not-present) merchants will struggle with increased fraud as criminals shift online to more vulnerable remote payments.
Multilayered authentication is critical for preventing card-not-present (CNP) fraud. A layered approach enables merchants to safeguard payments at all levels. Combined with the industry best practices outlined below, merchants can offset the detrimental impacts of EMV on CNP payments and fraud.
Authentication is a way for merchants to validate both the legitimacy of the card itself as well as the identify of the person attempting to use it to make a purchase. Authentication is a top priority in the fight against CNP fraud because the merchant cannot view the actual credit card. There are a variety of ways to authenticate CNP payments: