Mastercard Incorporated · NYSE:MA
Mastercard — Authentication Webinar Series (November 2018)
22 slides from Mastercard's conference presentation, Nov 28, 2018
Slide 1: How to Participate in EMV 3-D Secure & Increase Your CNP Approvals
AUTHENTICATION WEBINAR SERIES How to Participate in EMV 3-D Secure & Increase Your CNP Approvals November 28th, 2018 Proprietary & Confidential
Slide 2: Today's Speakers
Today’s Speakers Patrick Kelly Seckin Yilgoren Craig Gilbert Director, North America VP, Product, ©2018 Mastercard. Proprietary and Confidential. SVP, Global Product Management, Commercialization, Mastercard Mastercard Mastercard
Slide 3: Agenda
Agenda q Introduction to EMV 3-D Secure & Mastercard Identity Check q Benefits of participating q User Experience Demo q How Mastercard can help enable you q Enhancements to Mastercard 3-D Secure Construct & Program q Next steps to implement EMV 3-D Secure for your business q Mastercard Identity Che
Slide 4: EMV 3DS
EMV A new industry standard used to check a consumer’s identity on digital payment 3DS transactions “ 3DS 2.0 ” Mastercard’s implementation of EMV 3DS A simple and secure way to verify a consumer’s identity in real-time during a ©2018 Mastercard. Proprietary and Confidential. digital payment transac
Slide 5: What is changing with EMV 3-D Secure (2.0)?
What is changing with EMV 3-D Secure (2.0)? Global Activation: November 6th, 2018 3DS 1.0 3DS 2.0 Benefits of 3DS 2.0 Standards Standards AUTHENTICATION Static passwords & security Eliminates static passwords for stronger • Greater security questions two-factor authentication e.g., risk based, METHO
Slide 6: How much more data & insights are leveraged in 3DS 2.0 versus 3DS 1.0?
How much more data & insights are leveraged in 3DS 2.0 versus 3DS 1.0? 3DS 1.0 Data (Initial Message – VEReq) 3DS 2.0 Data (Initial Message – AReq) Merchant Risk Indicator (Delivery Timeframe, Re- 3DS Requestor Authentication order, Pre-order, Gift Card) Information (Method), Challenge Cardholder Ac
Slide 7: How is the user experience?
How is the user experience? Free from onerous authentication steps PLAY DEMO ©2018 Mastercard. Proprietary and Confidential. MARCH 20, 2018 7
Slide 8: Mastercard's Full Product Suite Enhances 3DS 2.0
Mastercard’s Full Product Suite Enhances 3DS 2.0 Identity Merchant Check Issuer Mobile 2 Mastercard Directory Server & 4 Program Enhancements 3 3DS Server Access Control RBA NuData 3DS Provider Server Services ©2018 Mastercard. Proprietary and Confidential. 1 Digital Transaction Insights Data Only P
Slide 9: Mastercard provides the ecosystem with greater choice to optimize EMV 3DS usage
Mastercard provides the ecosystem with greater choice to optimize the usage of EMV 3DS 3DS 2.0 Frictionless Influence Issuer No Transaction Liability Shift Real-time Use Case Experience Approval Latency Mastercard Risk Decision Assessment Data Only Payment Authentication ©2018 Mastercard. Proprietar
Slide 10: Issuers will receive Digital Transaction Insights for 3DS 2.0 and Data Only transactions
Issuers will receive Digital Transaction Insights for 3DS 2.0 1 Authentication & Data Only transactions from merchants Reason Code Examples: O Cardholder positive transaction history A Suspicious Account Activity P B Known device with positive Unknown device with no association with association with
Slide 11: Program Enhancements to 3DS 2.0 Construct
2 Program Enhancements to 3DS 2.0 Construct NEW Authorization Network Cryptogram Data Elements Monitoring What is it? What is it? What is it? The Accountholder The “Transaction ID” is a Ceiling on fully Authentication Value unique identifier generated authenticated fraud level (AAV) provides evident
Slide 12: Stand-In RBA responds to merchant initiated authentication requests
3 Stand-In RBA responds to merchant initiated authentication requests when issuer is not able to respond 1 2 3 4 • Cardholder initiates e- • Data (Device, Cardholder, • Mastercard Stand-In RBA • RBA Scoring Output: commerce transaction Transaction Details) sent to determines authentication • Low Ris
Slide 13: Mastercard 3DS 2.0 Solutions for Merchants, Acquirers & PSPs
4 Mastercard 3DS 2.0 Solutions for Merchants, Acquirers & PSPs Supports authentication all Payment flows 1 1 • Brower • Mobile 3DS Server* 2 • Supports 3-D Secure authentication for all payment 3DS Server 2 networks • Flexible Suite of APIs for merchants, acquirers and/or PSPs to integrate ©2018 Mas
Slide 14: 3DS 2.0 Increases Approval Rates & Decreases Fraud
3DS 2.0 Increases Approval Rates & Decreases Fraud Increase Approvals APPROVALS RATES Q4 2017 Global Results +5% Cineplex 3DS trxns 97% Increase in approvals Canada All eComm when transactions are 85% fully authenticated1 Trxns NET FRAUD BPS Q4 2017 Reduce Fraud <8BPS Case Study 13.01 ©2018 Masterca
Slide 15: 3DS 2.0 & Identity Check Rollout is Underway
3DS 2.0 & Identity Check Rollout is Underway 100+ Global Merchants Thousand of customers availability and Issuers transactions enrolled in Nov ‘18 live in US & processed globally Europe ©2018 Mastercard. Proprietary and Confidential. 15
Slide 16: 3DS 2.0 Early Adopter Program Learnings
3DS 2.0 Early Adopter Program Learnings EMV 3-D Secure processing time is 2x-3x faster than former standard Merchant must ensure that EMV 3-D Secure data is formatted correctly and present when “conditional” per the EMVco Specification Merchants, Acquirers and PSPs need to make sure that the authent
Slide 17: Mastercard Identity Check Program: Roadmap
Mastercard Identity Check Program: Roadmap November Identity Check / 3DS 2.0 Activation (All) December 3DS 2.0 December December Cryptogram Identity Check Early Adopter requirement Program Compliance Program (Issuers and ACS) (All) concludes 2018 2019 18. Q4 19.Q1 19.Q2 19.Q3 19.Q4 ©2018 Mastercard.
Slide 18: Thank You!
AUTHENTICATION WEBINAR SERIES Thank You! Please contact Patrick for any additional information Patrick Kelly patrick.kelly@mastercard.com ©2018 Mastercard. Proprietary and Confidential. Webinar Recording & Deck will be Sent Out to All Participants 18
Slide 19: What Acquirers need to do to be ready for the next generation of 3-D Secure
Acquirer What Acquirers need to do to be ready for the next generation of 3-D Secure (EMV 3-D Secure) WHAT YOU CAN DO NOW ü Review documentation, Identity Check Program and Requirements on Authentication Network Information Center Access Authentication Network via MC Connect Information Center (MC ü
Slide 20: What Issuers need to do to be ready for the next generation of 3-D Secure
Issuers What Issuers need to do WHAT YOU CAN DO NOW to be ready for the next ü Register in Identity Check Program platform (MC Connect) generation of 3-D Secure ü Enroll portfolios in Identity Check Program in Identity Solution (EMV 3-D Secure) Service Management application (MC Connect) ü Utilize M
Slide 21: What Merchants need to do to be ready for the next generation of 3-D Secure
Merchants What Merchants need to do to be ready for the next generation of 3-D WHAT YOU CAN DO NOW Secure (EMV 3-D Secure) ü Select and integrate with 3DS authentication environment via an 3DS Service Provider ü Define thresholds for 3DS Authentication and ensure all Access Authentication Network EM
Slide 22: Payment Use-Cases
Payment Use-Cases Authentication Authorization Clearing Use Case #1: Partial/ Split Shipment – For Payee Payer 3DS for $550 $550 e.g. Ordered products are not all available at 1 the same time. The Merchant decides to ship $200 2 separately. $350 3 Authentication Authorization Clearing Use Case #2: A
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