EMV Will Lead the Way to Electronic Payments Security


EMV Will Lead the Way to Electronic Payments Security

Come October 2015 and the much touted EMV liability shift will come into force. The liability shift will make issuers and merchants using non-EMV compliant devices liable for any fraudulent transactions made with EMV-compliant cards. Besides preparing for the transition to chip card usage, payments industry stakeholders are laying the groundwork for the future of payments. Europay Mastercard Visa (EMV) is the new cornerstone of electronic payments security.

Card networks are apprehensive of the additional avenues of risk that could open up with fraudsters shifting their attention to online spending. However, their focus will now shift to the next point of weakness now that the latest development in the payments industry promises to strengthen electronic payments security.


Multi-Channel Payments and Security

With the emergence of different payment channels, merchants that have not jumped on the online bandwagon must stay relevant and provide a secure payment experience to customers. It is important to educate merchants on the usage and benefits of the new chip cards that promise to cut down the rate of fraud.

However, it is imperative that the payments industry focuses on securing all channels of electronic payments to ensure there are no points of weakness that fraudsters can target, especially as consumers’ preferences are changing rapidly.

Consumers feel more comfortable using mobile devices for online shopping and making payments. An increase in the volume of online payments undoubtedly raises the risk of card-not-present fraud. To deal with this risk, Discover is coming up with chip cards that ensure security for multi-channel payments.

As far as the card-not-present payments channel is concerned, transactions can be secured through tokenization. The key to electronic payments security and other transactions lies with more intensive customer verification using the restructured 3D Secure service.


Collaboration is Key

The need of the hour is a unified approach, wherein all key players in the payments industry come together to enable emerging commerce and find a common solution for electronic payments security. It is also important for them to agree on the adoption of EMV, instead of creating specific standards for payments that apply only to their specific channel or system.

Discover is collaborating with all stakeholders, including merchants, issuers, processors, acquirers, and value-added resellers, to gather support for EMV and greater unified security measures to safeguard the entire payments ecosystem.

It is important that the payments industry takes necessary steps to adapt to the new advancements in this age of digital transformation.

In this evolving landscape, all stakeholders must take steps to leverage technology to offer a better customer experience through a more convenient, secure, and seamless payment structure.


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