The Future of Cardholder Verification Methods

With the U.S. well on its way to adopting the EMV chip card standard, fraud at the point of sale will not disappear. Lost/stolen fraud, mail interception, and account takeover are just a few ways fraudsters can gain access to physical cards. But with consumer expectations around financial services in general and transactions in particular being increasingly defined by their mobile experiences, issuers and merchants cannot afford to add friction during transactions. Meeting these challenges requires a multidimensional approach to cardholder verification relying on rich customer intelligence, friction-free risk evaluation, and on-device authentication.

Key questions addressed in this report:

• What are the primary fraud threats to cards at the point of sale in a post-EMV U.S.?
• What requirements must new point-of-sale authentication tools meet?
• How can issuers boost security at the point of sale without imposing onerous authentication requirements on their customers?
• How can issuers create a unified security experience across all transaction channels: point of sale, online, and mobile?
• What unique opportunities do mobile devices offer in boosting transaction security?

Companies Mentioned: Apple, Capital One, EyeLock, EyeVerify, Fujitsu, Google, Home Depot, MasterCard, Microsoft, Ondot, Samsung, SmartMetric, Target, Visa, Wells Fargo, Zwipe

Consumer data in this report is based on information collected in random-sample panel surveys of:

• 5,111 consumers in an October/November 2015 survey. The margin of sampling error is ±1.37 percentage points for questions answered by all respondents.
• 10,639 consumers in a May 2016 survey. The margin of sampling error is ±0.95 percentage points for questions answered by all respondents.
• 3,200 consumers in an October 2015 survey. The margin of sampling error is ±1.73 percentage points for questions answered by all respondents.
• 3,195 consumers in a June/July 2015 survey. The margin of sampling error is ±1.73 percentage points for questions answered by all respondents.