Marqeta launches new 3D Secure solution to reduce fraud risk for customers

By Megha Bhattacharya

Global card issuing platform, Marqeta, has announced the release of its new 3D Secure solution in a bid to help card issuers meet the regulatory requirement of Strong Customer Authentication (SCA) under PSD2 in certain markets. The new solution is also expected to enable the issuers to develop customised cardholder authentication experiences for reducing online fraud.

The company’s new solution has been certified with Visa 2.2. Standards and aims to allow for better customisation and control over fraud and authentication decisions. It will also help European issuers to comply with the SCA regulatory obligations.

3D Secure is an authentication protocol developed by the card networks and applies to transactions where the card is not present (CNP) such as online and mobile.

“As businesses turn to digital payments in the face of COVID-19, fraud has become a prevalent issue for consumers. It’s imperative that our customers are provided with complete control over their transactions to help combat fraud and deter risk,” said Marqeta Chief Product Officer, Kevin Doerr. “Our single global platform enables advanced authentication methods for card issuers that improve security without compromising the end-user experience.”

European digital banking provider, Twisto is currently in development to use Marqeta’s 3D Secure solution in a bid to authenticate cardholders with a better cardholder experience. Twisto is expected to use the company’s open APIs to design an authentication experience that utilizes biometrics within its mobile banking app to verify cardholders without having to redirect them to unfamiliar websites or enter passwords. The implementation will equip Twisto with its own real-time fraud data to make risk decisions and avoid unnecessary friction for cardholders by allowing exemptions for certain transactions.

“Our customers expect a seamless check-out experience with our mobile app, and we knew we needed to find a solution that would allow us to reduce fraud while also providing us full control over the cardholder experience. With Marqeta’s APIs, we were able to easily design the authentication process without adding unnecessary friction to the customer experience and are now positioned to expand into new markets faster and more securely,” said Twisto Founder & CEO, Michal Smida.

According to Marqeta, the new 3D Secure Solution will enable issuers to own and tailor the authentication experience for cardholders, authenticate and authorize transactions on one unified platform to minimize integration and cost, and enhance data sharing between parties to better identify cardholders and reduce their friction.