vision 2014: to trust or not to trust
DESCRIPTION
The faceless consumer is becoming a constant presence in today’s increasingly digital world. Retailers and financial institutions need to understand the different approaches to security required when dealing with consumer devices instead of consumers. Ori Eisen, 41st Parameter’s Chief Innovation Officer, will describe how device recognition technology can provide banks and retailers with valuable information about Card Not Present transactions and the consumer behind the device.TRANSCRIPT
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To trust or not to trust
Ori Eisen 41st Parameter – A part of Experian
#vision2014
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Customers love to buy with mobile devices
15% increase in
online purchases
35% increase in
mobile devices
Consumers aren’t simply
“window shopping” or comparing
prices with their mobile devices;
they are shopping on them now
as well
New study data released from 41st Parameter, December 2013
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Increased mobile activity means less trust
You really don’t know
most of your online
customers
Can’t recognize = Can’t authorize
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If you can’t trust who’s coming to your site to buy…
…you are declining
legitimate purchases
unnecessarily just because
you are uncertain
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Facts that may surprise you…
Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014
17% report having had an online
transaction declined
$40B lost each year due to false positives
that could be reclaimed
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Ever wondered how
your customers feel
when their credit cards
are declined online?
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83% feel this way
Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014
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When customers are declined they…
Unnecessary operational costs
Decreased loyalty
Interchange loss
Lost revenues
Called the issuer 48%
Source: TrustInsightSM survey of online consumers who had a CNP transaction declined,
n=1,000 – January 2014
34% Used a different card
24% Used another
payment method
14% Decided not to purchase
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Who does your consumer blame?
Credit Network 40%
Online
Merchant 32%
Issuing Bank 28%
They blame
you…
Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014
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TrustInsightTM
Improving customer service
and loyalty
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Birds of a feather...
Security blanket post EMV 4
3 Reduced operational
costs
1 Better customer
experience
2 More profitable
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Customer is king
Don’t let the
perceived lack
of trust ruin your
most important
relationships…
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Portfolio of 100M cards:
► ~$500M in added traffic
► ~$10M in interchange
► ~$10M in APR fees
Reclaiming unwarranted declines
► ~$120B transactions declined
► ~$40B were legitimate
Who doesn’t want to make more $?
…high level estimated benefits
between $30M and $295M/year… “ – Top-10 issuer on value with 10% salvage rate
and 10% merchant adoption rate ”
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Drive down operational costs
Less complaints.
Less overall cost.
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Reduce additional validation checks during checkout
Security blanket to curb CNP fraud losses post EMV
Allows good customers through when CNP models will tighten up post EMV
You’ll be in a more secure place
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CNP fraud rose with EMV adoption in Europe
U.S. is the next market to adopt EMV by 2015
Reduce false-positives when fraud strategies clamp down
eMerchants face trust issues post EMV chips
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Scattered customer data benefits no one
earls.com
Buying patterns
Device used
emporium.net
Methods of payment
Time online
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Holistic views benefits all
Buying patterns
Device used
Methods of payment
Time online
earls.com
Methods of payment
Time online
Buying patterns
Device used
emporium.net
✔
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Data sent one-way hashed SHA-256 – never PII
Simple API for merchants and issuers – easy to integrate
No impact to customer experience, invisible
Participants benefit from pooled data’s network effect
Trust… it’s a good thing
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For additional information, please contact:
[email protected] | @orieisen
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in the Daily Roundup:
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