Why Arcot 3DS Program Management
Regulators and schemes in parts of the world have mandated the use of 3DS authentication for various types of payments, including card-not-present (CNP). This in turn has promoted 3DS authentication to a mission-critical service for card issuers. To do 3DS well, issuers need one or more subject matter experts (SMEs) to manage the day-to-day operations of authentication but key challenges are:
Issuers Receive a Dedicated Arcot 3DS Consultant
How does it work
Upon commencement of the service, Arcot assigns a 3DS consultant to the issuer. 3DS consultants have deep expertise in both the 3DS protocol and the Arcot payment authentication service. 3DS consultant will continuously assess an issuer’s active ruleset, monitor transactions for fraud, and make real-time changes to the Arcot service as needed. 3DS consultant becomes an extension of an issuer’s fraud team, acting as an embedded 3DS subject-matter expert (SME). They spend all day, every day using the Arcot Network to optimize an issuer’s authentication strategy - using data to measure results, identify trends, and implement changes.
BONUS: Services credit of $150K USD! Issuers that subscribe to 3DS Program Management will receive $150K USD of service credits to be used at the discretion of the issuer. Examples include: Biometric/device id integrations, trusted beneficiary, and in-app authentication (OOB).
The 3DS consultant will perform continuous assessments and management of the issuer’s ruleset. The ruleset will be optimized using the Arcot score to drive compliance while reducing friction and fraud. If an issuer wishes to maintain control of the ruleset, the 3DS consultant will stage the recommended changes for approval.
Fraud AlertingThe 3DS consultant is notified of potential fraud in real-time and then works with an issuer to make any needed changes to the ruleset.
ReportingArcot will provide operational reporting and regulatory reporting on a regular basis.
Operational Monitoring & Reporting - a weekly report that shows the current performance of the payments program compared to the issuer’s defined operating points for ASR, CR, and CSR as well as a performance at fraud detection.
Regulatory Reporting - a bespoke dataset provided for inclusion with the issuer’s existing regulatory reporting framework. Issuers can opt to have this provided on either a monthly or quarterly basis to align with the current schedule for submissions.
Benefits of 3DS Program Management
Increased Authentication Success Rates
Higher authentication success rate (ASR) gives a good cardholder experience. No one likes being declined and, when a cardholder is declined, they are more likely to switch to an alternate card for a second attempt. Higher ASR increases the issuer’s revenue from a combination of more interchange revenue from debit cards and the ability to charge more interest on credit balances. Schemes are closely monitoring these thresholds and they view them as a critical metric for the success of their payments program.
Increase the authentication success rate by implementing the Arcot Fortress ruleset. This is a score-first strategy, where the Arcot predictive score is used as a foundation for fraud detection. The score is used to find the majority of the fraud, and supplemented with expert rules for targeted fraud patterns.
Reduced Challenge Rates
Improve cardholder experience with less friction for transactions. Every challenge has a cost; whether it’s for SMS delivery or a push to a mobile-app, so it is most cost-effective to only challenge the right transactions.
Reduce the challenge rates by application of a robust risk-based strategy to apply frictionless authentication wherever possible and via extensive use of exemptions.
Increased Fraud Mitigation
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