On March 10, 2021, INFORM and Netcetera came together for another joint webinar to address some of the challenges faced by issuers, acquirers and merchants within the payment ecosystem. An overall emphasis was placed on the importance of having an end-to-end risk management strategy in place, which can be used to prevent fraudulent transactions, optimize conversion rates, and ensure compliance to local payment regulations.
The webinar began with a look at the challenges currently faced within the ecommerce and payments space, which include:
- Satisfying opposing requirements (PSD2 / Card schemes)
- Combining different technical levels and channels
- Creating a smooth process for all stakeholders in the payment ecosystem
- Balancing convenience, risk, and trust
The presenters then moved into best practice examples on how to address these challenges from the perspective of various stakeholders within the payment space. The important message to take away from this segment was focused on creating a continuous risk data flow as payments traverse through the payment ecosystem. With strong risk assessments at all levels, PSD2 exemptions can be optimally utilized to increase the number of frictionless transactions. This also helps build up a payment ecosystem based on trust.
An example of authentication on the acquirer side which utilizes risk-based authentication and the transaction risk analysis PSD2 exemption can be seen in this short clip:
At the end of the presentation, the speakers summarized the key takeaways which included:
- An end-to-end risk management approach allows for the best user experience with as little friction as possible
- Data is key – the more data available, the better and more dynamic the risk profiling will be
- Every stakeholder has an active role in the growing and securing the digital commerce space
- End-to-end risk management will sharpen the accuracy of decisions and result in reduced fraud rates
If you would like to watch the full webinar, you can request access to the on-demand recording here.