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How a modern 3DS ACS delivers more flexibility, control, and better CX

Payments Fraud prevention Security
In one of our recent Behind the Shield videos, I joined fellow Entersekt specialists Brian Kappler (Regional Sales Director), Eric Dalton (Client Success Lead), and Frank Moreno (Chief Marketing Officer), to discuss why issuers should move beyond the limitations of an outdated 3-D Secure (3DS) access control server (ACS).

With global card-not-present (CNP) fraud on the rise (and predicted to reach nearly $50 billion by 2030), it’s not surprising that we’re seeing a resurgence in 3DS activity in the market.

Our discussion revealed several problems that issuers are experiencing with outdated competitor ACS solutions and how a modern ACS, like Entersekt’s, is better equipped to prevent payment fraud while still prioritizing cardholders’ interests and experiences.

Here’s a summary of our findings:
Legacy ACS
Entersekt's ACS
• Lack of control to customize or change the 3DS program. Can’t use your own risk engine.
• More control to manage 3DS your way; option to use your own risk engine.
• Static risk rules vulnerable to fraudsters’ AI, with higher false declines and fraud.
• Adaptive risk intelligence considers context; minimizes fraud and false declines.
• Limited authentication methods: reliance on outdated, easily intercepted OTPs.
• Strong integrated authentication includes out-of-band, biometric, and silent options.
Let’s discuss these elements in more detail.

A 3DS ACS with greater flexibility and control

When an issuer needs to make a change to their 3DS ACS, like changing a rule or a logo, it’s for a good reason, and should typically be resolved fast. Yet, with many ACS providers, a change request can take weeks to implement. What’s more, every change means another charge, like additional development or project-related costs.
I believe it’s important for ACS providers to provide a flexible and fast service. That’s why, at Entersekt, we provide guardrails, not train tracks. We enable issuers to take the reins and make the changes they need in real-time.
Another problem area issuers run into is testing a rule change. With many ACS providers, testing is based on limited historical data. With Entersekt’s ACS, however, issuers receive context-rich data, which helps them adapt their rules to the latest trends and behaviors. They can also test and optimize their rules using a rule simulator without having to change the rule in production. What that means is less rule changes are needed in the end. And when all this is done right, as Eric pointed out, we’ve seen up to 70% reduction in fraud with our clients!
We provide FIs with that choice and control, but also ultimate flexibility, coupled with data insights about transaction trends and rule impact specific to their portfolio.

Ease of integration with a modern ACS

When it comes to modernizing authentication technology, our discussion summed up Entersekt’s approach well. We work closely with our partners and clients to understand the architecture and understand what we can build, so we can build it faster, more efficiently and enable more data-driven insights.
While it’s still common for banks to use different providers across their channels, doing so creates data silos, which can affect customer experience and increase security risks. With Entersekt, integration is simple — a single API that you plug in across all your channels. That means no more data silos, and, instead, shared intelligence across all channels for a secure, seamless experience.
Watch this video with Entersekt and Glenbrook Partners exploring why it’s essential to remove the silos where payments fraudsters thrive.

Bringing issuers closer to their ACS with dynamic risk intelligence

Financial institutions are required to know who their customers are. That responsibility includes making sure the cardholder transacting is who they say they are. The right ACS solution employs a customer-friendly, data-driven approach to achieve that effectively.
Entersekt’s ACS — with input from Authentication Advisor — analyzes hundreds of real-time data points against data generated from billions of global transactions. This data can also include the cardholder’s contextual and cross-channel interactions. The solution dynamically assesses transaction risk in real-time and applies the issuer’s specific rules to increase transaction success and minimize false declines, all while protecting cardholders and the FI from fraud.

Creating streamlined, consistent, and secure payment experiences

One-time passcodes (OTPs) are long past their expiration date. Issuers still using OTPs to authenticate are doing a disservice to their cardholders because delivery is unreliable and it’s often a cumbersome experience to retrieve and re-enter the OTP. What if the cardholder is traveling abroad and can’t receive the OTP, or is somewhere with limited connectivity? Furthermore, OTPs are susceptible to fraud as they’re easily intercepted through social engineering, a SIM-swap, or spoofing attack.
Learn how to protect your FI and customers from common scams and fraud in our ebook.
Newer methods offered by Entersekt, like biometrics or push notifications, are more secure and user friendly. These modern options are also more familiar to customers and often their preferred authentication method.
Creating a consistent customer authentication experience across digital banking and online payments is critical to developing a long-term relationship with accountholders that leads to top-of-wallet card status and expanding deposits.

How effective reporting supports chargeback reduction

FIs need effective reporting for many reasons. Firstly, many issuers struggle to hit card brand compliance benchmarks because they don’t have indicators that they are missing the mark until it’s too late. Entersekt simplifies compliance. For example, we have a specific report that provides real-time visibility into how the issuer is tracking toward Mastercard Edits. Secondly, the right reporting can help reduce chargebacks.
When it comes to third-party chargebacks, effective reporting allows issuers to learn the typical characteristics associated with stolen card data, and set rules accordingly to prevent fraud at the point of transaction. In the case of first-party fraud, Entersekt’s easy-to-access reporting enables issuers to easily access real-time tracking data that can prove authentication by the legitimate cardholder. As chargebacks are predicted to increase, issuers should expect their ACS to include tools that help them battle this threat too.

Elevating cardholder experience with an advanced ACS

We’re here to help issuers deliver the best possible cardholder experience — one that includes seamless authentication and protection from fraud before it happens. With greater flexibility and control, an intelligence-driven approach, and modern banking and payment authentication technology, issuers can win the fight against fraud and earn the valuable loyalty of their cardholders.
Ready to take the next step? Learn how updating to Entersekt’s modern 3DS ACS can give your FI the competitive advantage.