Tender Armor, a fraud prevention payments solution provider, launches CvvPlus, in Europe. CvvPlus is a new innovative real-time, dual-factor, out-of-band fraud prevention solution that authenticates cardholders conducting card-not-present (CNP) transactions. Utilising a rapid, low-cost deployment model, CvvPlus is available now for implementation across all financial institution (FI) demand accounts and card portfolios, supporting CNP and card-present purchases requiring a payment security code (such as a CVV2 or PIN).
CvvPlus is designed to help banks stop skyrocketing CNP fraud losses, and protect cardholders while making everyday purchases. Fraudsters have switched their focus to the CNP channel following the migration to chip-and-pin for point-of-sale (POS) transactions. Rising CNP volumes have been accompanied by more CNP fraud with a 20 per cent increase in year-on-year losses across Europe, according to the latest European Central Bank figures. These losses represent an excess of €950 million per year – a figure that is steadily increasing. CvvPlus works via a dynamic security code kept separate from the payment card, providing issuers with an effective means of reducing CNP fraud exposure – while putting control back in the hands of cardholders.
In addition to preventing CNP fraud, CvvPlus goals are aligned with incoming European Payment Services Directive II (PSD2)’s requirements for stronger cardholder identification. CvvPlus is a user-friendly and cost-effective way to protect cardholders without changing behaviours. Additionally, the solution is transparent to merchants who need not modify their websites to accept the code. Cardholders can receive the CvvPlus code via any delivery channel including a mobile app or text-on-demand.
Madeline K. Aufseeser, CEO of Tender Armor, commented: “The CNP channel is now on the frontline of card fraud, and is escalating at a rapid pace in Europe. This is exactly why regulatory authorities are taking action – but FIs can help reverse this trend now. Easy-to-use, easy-to-deploy and low-cost, the solution can be used for every card currently in consumer wallets across the continent. We are confident CvvPlus will reduce CNP card fraud and the costs associated with it.”
Andrew Copeman, Business Development Director for Europe at Tender Armor, continued: “CvvPlus is completely aligned with current thinking on Strong Customer Authentication. It will prove a vital tool in combating CNP fraud, increasing consumer and merchant confidence with regard to e-commerce and phone-based transactions.”
Fran Howarth, Senior Analyst at Bloor Research, stated: “CvvPlus, a new fraud prevention solution, is arriving at a perfect time for the European payments industry. Banks currently struggle keeping ahead of rising card-not-present fraud schemes while ecommerce purchasing grows. Banks also face new and tougher regulatory challenges mandating increased security and protection for customers. The CvvPlus solution is flexible in its delivery, and intuitive to use, making it easy for cardholders to integrate with their normal online shopping behavior. CvvPlus does not require investment or action from merchants – another key factor in acceptance. Yet, the biggest advantage with CvvPlus is its out-of-band communications methodology, putting security and control back in the hands of banks and their customers. "