In this episode, Yvette Bohanan sits down with Bryan Derman, Chris Uriarte, and Drew Edmond to take stock of payment industry trends as we reach the halfway point of 2023, to hear their perspectives on what’s hot, what’s not, and what are they watching as we venture into the second half of the year.
In this episode of Payments on Fire®, Yvette Bohanan is joined by Patrick Chen, co-founder of Spec, to discuss payments risk, fraud, and the age-old question of good versus evil. Listen in to hear how organizations can combat fraud while still providing the best customer journey.
We all know that there are risks in payments. When the controls we put in place to manage risk fail, fraud is the result. Fraud, or fraud prevention, is now an industry using many of the same tools to defeat our controls that we use to defend our payments systems.
In e-commerce and mobile commerce the problem of false declines is significant, especially during the holidays. Issuers decline transactions that online merchants approve. And vice versa. In other words, the necessary process of sorting out fraud from good transactions catches good transactions with the bad. This poor decision making means merchants lose the sale and the issuer its transaction fees.
Machine learning and the broader category of artificial intelligence are rightly attracting attention and discussion. These are powerful technologies. But, like many new technology conversations, there’s the suggestion that they can address all use cases.
The domain of point of sale (POS) has three legs to its security stool: EMV, point to point encryption, and card number tokenization. Card not present (CNP) merchants and issuers have the more challenging task of assembling fraud mitigation tools on their own.
Realtime, consumer-facing authorization of card payment transactions has been available for some time but few of us have it offered to us by our issuers. Today, there’s a number of technology providers selling truly realtime notifications and two-way approval requests based on the live authorization stream.
