EDCR 2.0 - Cutting Edge Solutions for Seamless and Secure Transactions
In the ever-evolving landscape of digital payments, there are two key challenges: enhancing user experience and fortifying defenses against fraud. As digital transactions continue to surge, the sophistication of cybercriminals escalates in tandem, demanding the implementation of robust risk and fraud management solutions.
Businesses need to keep their users satisfied and continuing to make payments while maintaining tough security measures. To help address this, Visa has focused on Cutting-Edge Risk & Fraud Management as a key pillar of their Enabling Digital Commerce Roadmap (EDCR). In this article, we will break down the three key factors: Transaction Fraud Prevention, Simplifying Digital Wallets with Issuer xPays Push Provisioning, Secure Credential Framework for Merchants and Acquirers.
Transaction Fraud Prevention
Payments fraud is an ever-increasing threat for businesses and consumers. AI is already helping Visa and the issuers with whom they work with detect more fraud, with acceptance rates rising from 62% to 97%. With Transaction Fraud Prevention, there is a combination of scores known as Visa Advanced Authorization (VAA) for all Visa processed transactions, and for attempts to pay using tokens, there are Visa Provisioning Intelligence (VPI) scores. The end result is that issuers can make informed decisions about the likelihood of fraud in real time with high confidence.
Simplifying Digital Wallets with Issuer xPays Push Provisioning
Digital wallets are becoming ever more popular, and with this trend set to continue the process for token provisioning needs to be even simpler and more secure.
For cardholders, push provisioning means they can turn their cards into digital wallets from their mobile banking apps. To achieve this, Issuer xPays Push Provisioning requires active Visa Token Service issuers to enable support for push provisioning of card credentials from mobile banking apps into digital wallets. This not only provides a superior customer experience but also minimizes potential token provisioning fraud for issuers, illustrating how security measures can improve rather than hinder the customer journey.
Secure Credential Framework for Merchants and Acquirers
One of the most important ways merchants can ensure consumers have a seamless experience of payments is via card storage. As part of this, tokens are vital to secure card storage for merchants and help increase authorization rates through the issuers’ regular update of token credentials, benefiting all players in the ecosystem.
With the Secure Credential Framework for Merchants and Acquirers, all players in the acquiring ecosystem are required to implement network tokens either through VTS card-on-file tokenization or Click to Pay.
Merchants can reap the benefits of tokens for their card-on-file databases and/or through Click to Pay. With Click to Pay, merchants and cardholders will also benefit from a seamless checkout experience even if their card details are not stored on file with the merchant. Click to Pay on the merchant side is complemented with the Click to Pay requirement for the issuing side which drives cardholder enrollment, ensuring the lack of friction merchants want.
The benefits across the ecosystem
The adoption of these advanced risk management practices offers significant benefits across the payments ecosystem. By applying Visa Advanced Authorization (VAA) scores, activating Visa Token Service to support push provisioning and implementing network tokens, financial institutions can substantially reduce fraud-related losses while enhancing customer trust and satisfaction. Issuers, meanwhile, will be enabled to optimize their risk management strategies, making more informed authorization decisions and improving operational efficiency.
Such an enhanced security environment will also cultivate greater cardholder confidence, facilitating smoother transactions and ensuring a safe balance is maintained between robust protection and user convenience. These are measures which will not only safeguard stakeholders but also encourage wider adoption of digital payment methods, driving innovation and growth in the sector.
Together these advancements illustrate a broader trend in the industry: the move towards holistic, ecosystem-wide solutions that address security concerns while simultaneously improving the user experience and operational efficiency. As the payments ecosystem continues to evolve, the ability to innovate continuously while managing associated risks with flexible, intelligent systems will be crucial for sustained growth and relevance in the digital economy.
To learn more about the strategic themes under EDCR 2.0 please see our dedicated deep dives below:
- Keeping Payment Continuity and Efficiency
- Enhancing the Flexibility of Payments in CEMEA
- Building the Infrastructure for Faster Payments
Hear more from Visa's Godfrey Sullivan and Dan Baxter on the opportunities of EDCR 2.0 here.
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