3DS, Fraud, and Tokens Print

Modified on: Tue, 23 Feb, 2021 at 9:40 AM



Nexio uses multiple strategies to prevent fraud, keep customers’ private information secure, and provide a safe checkout method. Check out how this process works for back-office software on this webpage: https://nexiohub.com/howitworks/

3DS: 

3DS is a security tool for authentication of credit card users for e-commerce in Europe and some countries outside of the EU. The customer will be required to enter a password, as a subsequent authorization step, in their checkout experience. For transactions that are low risk, the customer may complete the purchase without additional authentication. Higher-risk transactions (usually less than 5%) will use the password method. 

Nexio partners with specific gateways for our international processing to ensure that all EU transactions apply the 3DS security tool. Preventing fraudulent transactions is another layer of protection for card-not-present purchases.

Fraud:

Fraud, Hacking, Phishing, Skimming, Scamming. Blackhats, Spyware, Malware. Cyber Attack, Data Breaches. Scary words for merchants who accept credit cards and have an e-commerce presence. You can not eliminate all credit card fraud, but you can take steps to manage fraud. The trick is to take preventative measures to stop fraud before it happens. You can not depend solely on the credit card company to prevent fraud. More fraud prevention tools are available:

AVS: In the US and a handful of European countries, Address Verification System (AVS) checks the cardholders’ address and zip code to see if it matches the card issuer’s bank information.

CVM: Another tool is Card Verification Methods (CVM). A CVM uses the security code imprinted on the card. This code is not embedded in the magnetic stripe of the credit card. As a merchant, you can require this information to be input into a field in your online shopping cart.

Kount: Nexio integrates with Kount to help with fraud management. Kount is a patented technology that prevents digital payment transaction fraud, new account creation fraud, and account takeovers. Our integration provides a web-based way to provide documentation and dispute chargebacks through our platform.

Tokens:

Tokenization swaps out sensitive data—typically payment card or bank account numbers—with a randomized number in the same format but with no intrinsic value of its own. This process differs from encryption, where a number is mathematically changed, but its original pattern is stored within the new code—known as format-preserving encryption. (TokenEx Website)

Nexio’s tokenization allows a merchant to save the token from a client for future use. If the client subscribes to a monthly shipment, the merchant holds the token to run the monthly transaction, rather than the card data. If a client pays a deposit, the merchant can charge the balance when due, using the token. With Nexio, the tokens are externally stored in a cloud security platform, providing maximum security. 

With the ever-increasing popularity of e-commerce purchases, fraudsters desire to make a profit, too. Nexio takes an intelligent approach to fight against e-commerce fraud. Our solutions leverage advanced machine learning and are adaptive to change as the industry grows and changes. With Nexio, you can rest soundly at night because we use Kount, 3DS, and are PCI compliant and help you tackle, manage, and mitigate fraud. 


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