by Carlos Häuser
November 12, 2015

Merchants should ensure they are up-to-date with the following three trends in the area of risk management

For all e-commerce and m-commerce merchants, effective risk management is very important. Recognising fraud in good time prevents lengthy corrective processes and potential loss of revenue. Merchants should therefore ensure they are up-to-date with the following three trends in the area of risk management

Faster and more secure payment process

1. The widespread adaptation to EMV technology will be a major topic this year, at least in the USA. EMV is a technical standard for payment cards equipped with a processor chip and the accompanying smart card devices. This chip technology enables a secure payment process and a short transaction period. The payment process is therefore faster and more secure.

New security standards for mobile payment

2. Another aspect is Digital Secure Remote Payments (DSRP). Because of contactless NFC payment transactions via mobile devices such as smartphones, tablets or wearables and remote payments via in-app payment functions, for example, security standards are essential. One way of continuing to enable secure payment via smartphone is tokenisation. With this method, the original payment data is encrypted in accordance with the PCI-DSS standard and only transmitted in the form of tokens during a transaction. The original data remains in the secure database. However, this also means that if a mobile payment is processed via tokenisation, the authentication process must operate smoothly and in real time. It is therefore advisable for suppliers to transfer this service to a specialist payment processor.

Recognise fraud online at the right time

3. Another interesting consideration is digital fraud in e-commerce. A complete solution such as Trust Evaluation Suite is highly effective, enabling all merchants to assess their customers, finding out not just where they come from but also their past transaction record. Solutions such as these encompass a comprehensive 360-degree view of all relevant information on consumers – automated and in real time. As a result, e-commerce fraudsters can be recognised in good time, before they can complete the transaction.