SC Magazine: Heightened payment security could hamper usability, says Visa

November 23, 2016 — Heightened payment security could hamper usability, says Visa

Robert Capps, the vice president of business development for NuData comments on this SC Magazine article discussing the European Commission’s European Banking Authority has detailed plans to heighten payment security.

The European Commission’s forthcoming Payment Services Directive 2 (PSD2) has released proposals to make consumers go through extra security checks for many online payments.

“Managing payments is always about balancing security and convenience. If you tip the balance too far one way, you end up making it either too difficult or too risky for consumers to make purchases wherever, whenever and on whatever device they want. Either way it annoys consumers and damages businesses’ potential to sell their goods and services.”

Robert Capps, VP of business development at NuData Security, told SC: “We’d tend to support Visa’s stance on this issue in several ways. While it may seem that adding more identity tests to the transaction stream should make the transaction more secure, this isn’t necessarily true. If the test is vulnerable to impersonation, as we see with physical biometrics, or is as vulnerable as passwords, no number of additional touchpoints will make the transaction more secure.”

Capps added: “The larger point here, however, is that adding friction to the transaction stream will absolutely result in increased cart abandonment rates and reverses a trend toward less friction that we have been striving for. The key is to find that balance between security and customer experience. Stray one way or the other and you’ve got revenue losses in the form of fraud or revenue loss in the form of customer unhappiness.”

For the complete article, go here.