California-based CyberSource has upgraded its payment gateway in the UK to support new industry initiatives designed to reduce fraud in the credit card-not-present (CNP) market.
The CyberSource payment solution, available as an outsourced service or in-house managed software, operates behind-the-scenes to authorise and settle electronic payments through built-in connections (via the domestic and international CyberSource payment gateways) with third-party processors and merchant banks.
The company's upgraded infrastructure now supports three new fraud prevention initiatives - card verification, the Address Verification Service (AVS), and the Electronic Commerce Indicator (ECI).
Card Verification is a system introduced by several card brands to assist the acquiring bank, issuing bank and merchant in validating CNP transactions. The system uses three or four additional digits, distinct from the account number, printed on the front or back side of the card, to further determine the consumer is actually in possession of the physical card. Merchants can request these card verification digits on their Web site payment page or verbally as part of a telephone order.
This code is now authenticated as part of the standard authorisation process facilitated by CyberSource with the card-issuing bank in the UK.
Address Verification Service (AVS) checking for UK bank-issued cards allows verification of the billing address details provided by the cardholder, with the actual billing address details held on file by the cardholders issuing bank. This real-time check will now be carried out as part of the authorisation process facilitated by CyberSource and a response, based on the validity of the provided address, will be returned to the merchant. Although not foolproof, this check will allow merchants to better control fraud exposure through the knowledge that the billing address given by the consumer can be verified as genuine for that card, says the company.
Electronic Commerce Indicator (ECI) is an indicator flag for all transactions that are generated via e-commerce. This flag is intended to identify to the banking network all e-commerce transactions, allowing card schemes to properly monitor transaction volumes and the associated fraud risk.
Neil Cook, managing director, CyberSource UK, says: "We are confident these new enhancements will provide more value to our payment service customers by helping reduce chargebacks and minimise product loss."