As Fraud Prevention Month in Canada comes to a close, it is natural to ask ourselves what the future will hold.
Happily, we are headed to a more secure working environment over the next 12-18 months as the new virtual cardholder authentication tools (EMV 3DS) start to be integrated into our transaction workflows.
Using EMV 3DS will provide the travel industry with a virtual equivalent of the credit card terminal used in physical stores; it also enables fraud liability to be fully transferred to the credit card issuer. We will finally have a tool to reduce fraud risk!
The credit card brands like Visa and Mastercard want both the credit card holders and the merchants accepting cards to be able to operate in a secure environment. Motivation is simple: if cardholders do not fear using their cards online, and if merchants are less concerned about fraud, total transactions will rise significantly.
Concrete steps now being taken
IATA is now rolling out their new data specifications (DISH 23) which permit cardholder authentication data obtained via EMV 3DS to be the delivered through GDS and BSP to the airline who is the actual merchant. Initial functionality for 3DS transactions should be ready by December 2019.
ACTA, ATOQ and CATO have formed a Task Force whose first working group will be reviewing how we can integrate EMV 3DS into the transaction work flow for tour operator product sales. Another Task Force working group will soon be established to review options for integrating EMV 3DS into the air consolidator transaction process.
In order to benefit from the full fraud protection, we will need to change the way we manage our work flow as full protection can only be provided when the cardholder interacts with an EMV 3DS online authentication gateway. This means that travel agent customers must be directed to a secure authentication portal where they enter their payment details and where card issuers review fraud risk.
In cooperation and consultation with all the players in the B2B2C distribution system, the industry will be implementing new systems and procedures that work well with our day to day realities and which ultimately deliver greater safety.
The Association of Tour Operators of Quebec (ATOQ), the Association of Canadian Travel Agencies (ACTA) and the Canadian Association of Tour Operators (CATO) share a common objective:
- Accelerate change towards a fully secure transaction environment for all participants in the travel distribution network in Canada;
- Our Associations will continue to work closely together to so that the members of the Canadian travel industry can be early adopters of the best tools available for fraud reduction;
- Safe selling, and never forget your best protection: KNOW YOUR CUSTOMER!