3. Digital identity verification
Digital identity is a way of verifying a user’s identity on the internet. From online purchases to self-service onboarding activities and multiple accounts or money-based actions, digital identity verification prevents fraud and protects sensitive digital activities.
When working with a payment provider, merchants should ensure that the digital identity measures that the payment provider implements don’t impact the customer experience in a negative way – for example, by prolonging transaction time or adding inconvenient steps for the user.
To provide high quality digital identity verification that doesn’t interfere with transaction speed and efficiency, payment providers like PayU often team up with digital identity verification companies.
PayU has developed a partnership for this purpose with AU10TIX, which harnesses advanced AI solutions to provide shoppers with the fastest and safest digital identity verification available.
4. Payment fraud prevention and risk-scoring
As more and more business moves online, cybercrime isn’t going away any time soon. The situation is in fact quite the opposite – cybercriminals are perpetually probing for weaknesses in payment systems while developing new and more sophisticated forms of attack. Merchants need to be on higher alert today than ever before.
Payment providers know the risks of cybercrime and the good ones are aware that security is now a more essential value proposition when it comes to payments than ever before. To protect merchants and consumers and deliver the most secure online payments, PayU offers an anti-fraud module that can be provided either out-of-the-box on our own platform or as a standalone module integrated with other payment systems.
PayU’s solutions identify, monitor, and prevent potential threats by monitoring customer and third-party data across 190 countries. By combining our own solutions with those provided by Feedzai and other trusted third parties, we are able to process over 10 million transactions each day while keeping customers safe.
5. 3D Secure implementation
As part of the European Union’s Payment Security Directive 2 (PSD2) regulations, Strong Customer Authentication (SCA) is now mandatory for all online transactions in Europe.
To reduce the risk of fraud, the requirements for SCA apply whenever an EU-based shopper makes a payment. While there are some exemptions, merchants shouldn’t rely on them when it comes to accepting online payments in Europe. This is because in addition to the risks of non-compliance from a regulatory point-of-view, implementing SCA standards can help merchants to boost approval rates and ensure more successful online payments everywhere in the world.
One mechanism for adhering to PSD2 is the EMVCo 3D Secure payment protocol (also known as 3DS 2), which is designed to help merchants comply with SCA rules while providing a better user experience at checkout. 3DS 2 are improvements to the original 3D Secure protocol for verifying digital payments. In addition to compliance, 3DS 2 makes collecting and processing customer payment information easier.
Merchants can streamline SCA implementation and access the other benefits of 3DS 2 by working with a payment provider that manages 3DS requirements as part of the overall product offering.
With 3DS 2 on its way to becoming a global standard, but not quite there yet, PayU supports merchants with 3DS implementation while at the same time mitigating the complexity and variations across different regulatory locations. For example, merchants can use the Smart Routing Engine to configure transactions according to which 3DS protocol (3DS 1 or 3DS 2) delivers higher approval rates in a given region.
PayU’s anti-fraud module also supports 3DS by authenticating transactions according to local regulations and routing payments via the appropriate local 3DS flow.