Enhanced fraud detection with Visa and Mastercard RBA Score

<Product enhancement to meet IPS mandate>

Visa and Mastercard have introduced new Risk-Based Authentication (RBA) scores to help issuers detect fraud more effectively and reduce the number of transactions that require Strong Customer Authentication (SCA). This enhancement provides issuers with another valuable parameter to their existing set of risk assessment tools, complementing other indicators supplied by payment schemes, the bank’s internal systems, and anti-fraud partners. As a result, RBA scores not only improve the security of the payment experience but also minimize friction for legitimate transactions. Currently, all issuers and processors handling e-commerce transactions must comply with the new rules set by Mastercard, and Visa is expected to implement similar requirements soon.

The new RBA score proposition leverages the global view of 3DS transactions and AI technologies provided by international payment schemes, enabling issuers to perform real-time risk assessments for every transaction. Integrated directly with 3DS messaging, these RBA scores allow issuers to dynamically adjust authentication levels based on the risk profile of each transaction. As a result, the rate of SCA can be reduced to 25% without compromising fraud prevention, according to estimates by Visa. The data suggests that up to 75% of all transactions across Europe are currently subject to stepped-up authentications under SCA.

Two Way4 risk management solutions support RBA scores:

1. Way4 Risk-Based Authentication (RBA) basic option (“v.1”): the basic risk management tool now supports an expanded range of fields, allowing clients to configure risk rules based on RBA scores. This update ensures that issuers can leverage Visa and Mastercard RBA scores to comply with the latest regulatory requirements and optimizes their fraud detection processes.
2. Way4 Faster Fraud Prevention (FFP): this advanced risk management solution already includes support for storing and processing RBA scores from Visa and Mastercard. With Way4 FFP, clients have full flexibility to configure risk rules according to their specific needs and adapt immediately to any new fields introduced by payment schemes. Once rules are configured, the system can automatically incorporate changes whenever Visa or Mastercard updates their requirements, ensuring continuous compliance and enhanced fraud detection without the need for additional system updates.

Clients using Way4 Faster Fraud Prevention enjoy more advantages. As this solution is continuously updated to meet the latest requirements from international payment schemes, it offers full support for RBA score integration and seamless adaptation to new mandates.