By working closely with the CyberSource team, we have committed to delivering the benefits of the new 3DS 2 protocol across our solutions and the wider travel ecosystem—laying the foundation for simple and efficient two-factor authentication by harnessing innovations such as biometrics.
EUROPE – Amadeus has embarked on a partnership with Visa’s payment management platform, CyberSource, which will see the introduction of a two-factor authentication for most electronic payments made in the European Economic Area (EEA).
The European Central Bank estimates Europe suffers from €1.3 Billion in online card fraud each year. That’s why the Payment Services Directive 2 (PSD2) and the Regulatory Technical Standards (RTS) mandate what is known as Strong Customer Authentication (SCA).
The collaboration is said to “help travel merchants prepare for SCA, reduce fraud risk, and minimise the potential impact on customer experience”, according to a press release by Amadeus.
Said Justin Fraser, head of CyberSource Europe, “The travel industry, like so many, is facing a new era shaped by new technology and regulation. This is coupled with the changing demands of consumers, who are expecting to interact and transact with ease. It’s critical to offer a seamless payment experience, while meeting new regulatory requirements and delivering effective authentication and fraud management.
The RTS stipulate that, for the majority of electronic payment transactions within the EEA, the payer will need to prove their identity using at least two of the below techniques:
-Something the payer knows (e.g. PIN)
-Something the payer has (e.g. SIM card or mobile device)
-Something the payer is (e.g. fingerprint)
To help support SCA requirements, CyberSource’s 3-D Secure (3DS) two-authentication solution is being integrated with Amadeus’ payment platform. Merchants and banks involved in payments can exchange “significantly more” data, which will support better risk assessments.
Bart Tompkins, managing director, payments, Amadeus, added, “By working closely with the CyberSource team, we have committed to delivering the benefits of the new 3DS 2 protocol across our solutions and the wider travel ecosystem—laying the foundation for simple and efficient two-factor authentication by harnessing innovations such as biometrics.”
Concluded Mr Fraser, “Travel merchants that have the right technology in place will be in a stronger position to optimise exemptions under SCA, manage fraud, and ultimately deliver on traveller expectations for simple and secure travel payments.”