3-D Secure authentication has become a foundational technology for protecting online card transactions as eCommerce continues to grow around the world. As digital shopping volumes increase, payment networks and financial institutions face the ongoing challenge of reducing fraud without creating unnecessary friction during checkout. Multi-factor authentication solutions help verify that legitimate cardholders are completing purchases, providing greater confidence for both merchants and consumers while supporting the continued expansion of online commerce.
American Express strengthened its online security strategy with the introduction of SafeKey, a fraud prevention solution built on Visa’s 3-D Secure protocol. By adopting an industry-standard authentication framework, American Express joined other major payment networks in providing merchants and cardholders with an additional layer of protection against unauthorized online transactions. The move also demonstrated the payments industry’s growing commitment to open security standards that improve interoperability while enhancing the overall eCommerce experience. As online shopping became more mainstream, technologies like SafeKey laid the groundwork for stronger authentication methods that continue to evolve today.
With its licensing of Visa’s 3-D Secure protocol, American Express has announced SafeKey, an online payment fraud prevention solution. Akin to Visa’s own 3-D Secure product, Verified by Visa, SafeKey provides cardholders and online merchants a way to authenticate purchases using an additional factor. American Express joins its rival payment card networks as 3-D Secure licensees, putting SafeKey in the market along with VbV, MasterCard SecureCode, and JCB J/Secure.
“American Express is committed to combating fraud for our merchants and cardmembers who transact online. American Express SafeKey is a new tool that will augment our fraud prevention solutions,” said Suzan Kereere, Senior Vice President of Global Network Operations for American Express. “As part of our commitment to global technology standards, American Express SafeKey was designed using 3-D Secure specifications to ensure industry-consistent processes and functionality.”
“We are pleased with American Express’ decision to license the 3-D Secure Protocol and we think this is a positive development for the industry and eCommerce. This reaffirms the position of 3-D Secure as the Internet authentication standard of choice,” said Jim McCarthy, Global Head of Product for Visa.
Visa and American Express support the development of global, open standards and recognize that a global authentication standard supports the continued growth of e-commerce. Visa continues to work with other industry leaders to accelerate the global adoption of 3-D Secure and welcomes industry participation in further expanding the global deployment of the 3-D Secure specification for Internet security and authentication. Using open authentication standards is an important and welcome step for the payments industry and the online marketplace.
American Express will enable SafeKey in Singapore and the UK on 8 November 2010 and begin working with merchants and card issuers in these markets to roll out the technology.
The adoption of 3-D Secure authentication marked an important milestone in the evolution of online payment security. While the technology has advanced significantly through newer versions that provide more seamless, risk-based authentication, its original objective remains the same: reducing fraud while preserving a convenient shopping experience. Industry collaboration around common security standards has helped merchants, issuers, and payment networks better defend against increasingly sophisticated cyber threats without sacrificing the speed and convenience consumers expect.
American Express’s launch of SafeKey illustrated the value of adopting shared authentication standards rather than proprietary approaches. As digital commerce continues to expand across devices, channels, and global markets, strong customer authentication will remain a critical component of payment security. Organizations that balance robust fraud prevention with low-friction customer experiences will be best positioned to build consumer trust and support the continued growth of eCommerce.
Read the Original Press Release: http://about.americanexpress.com/news/pr/2010/safekey.aspx
