• 21 Jul 2022
  • 6 Minutes to read
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Article Summary


Card-not-present (CNP) fraud costs issuers billions of dollars across the globe in chargebacks and disputes. As eCommerce and mCommerce continue to grow, you need the right tools to fight back. And you need security that doesn’t get in the way of genuine online transactions. In other words, you want to minimize fraud, avoid false declines and keep cardholders happy. Issuers, processors and merchants need proven and innovative solutions to curb sophisticated fraud organizations and their attacks without compromising the user experience.


Arcot provides the path to reducing fraud while creating a smooth cardholder experience by tapping into our comprehensive network of cardholder transaction data—across issuers and merchants. Our unique global fraud risk network and industry-leading data science enables highly accurate decision-making. And our patented predictive analytics and machine learning capabilities leverage extensive and diverse data provided through EMV 3-D Secure (EMV 3DS). 

Leading the Way in Fighting CNP Fraud

Arcot has been helping processors and issuers address payment fraud for nearly 20 years. Our uncompromising focus on the payments ecosystem has resulted in the largest global consortium network of fraud data. With the investments in data science, we lead the way with industry-leading modeling—leveraging the vast number of transactions that flow through our payment security platform.

The numbers speak for themselves.


With Payment Security Suite offered by Arcot, there’s no need to compromise. You can reduce fraud and false declines while enabling a frictionless cardholder experience. With a multidimensional view of transaction behavior, Payment Security Suite analyzes and compares connections among card and device activities as they happen. The platform adapts to fraud patterns in real time by leveraging this transaction intelligence and data. And when we say real time, we mean real time. With Payment Security Suite, a score arrives during the transaction, not after. And it’s used automatically—so you can take action to avoid fraud before it happens. You stay in control, maintaining your own fraud policies and systems while gaining the combined power of a flexible 3DS implementation, a dynamic field programmable rules engine, and predictive neural network authentication models. Payment Security Suite enables you to take a big step forward in lowering your costs and motivating customers to choose your card over others. In short, you maintain full control over your authentication strategy, fraud systems and policies. Simply said, our solutions help you lower your costs and accelerate your business success.

Cutting-Edge Fraud Protection

Payment Security Suite is a flexible SaaS solution that seamlessly integrates into your existing fraud prevention systems. With thousands of  implementations worldwide, the solution has proven reliability, scalability and security.

Benefits include:

  • Open and uncomplicated integration to support existing card issuer systems
  • The ability to use a variety of authentication methods such as push notification, SMS via OTP and others
  • The options you need to support banks with multi-country operations, service providers and processors offering card management services
  • The flexibility to maintain separate silos and business rules for different card portfolios—applying policy even at the sub-BIN level
  • Full compliance with all major card 3DS programs

Payment Security Suite provides flexible authentication that enables issuers to seamlessly implement a custom and comprehensive EMV 3DS program. You have full visibility and control over all CNP transactions, reducing both fraud and false declines. This provides you with the best of both worlds. A set-it-and-forget-it payment security solution that you can change if needed—in real time and based on your business rules.

The solution is highly configurable, making it simple to achieve your branding, user experience, card portfolio and security requirements—down to the card level. A field-programmable rules engine allows you to dynamically create and manage business rules at the portfolio level.

Finding the Balance

Card-not-present (CNP) fraud has become so advanced that legitimate transactions can look deceptive and illicit ones can appear authentic. It’s a thriving “industry” where perpetrators use readily accessible technology to constantly adapt to the security methods and practices designed to thwart them. These dynamics make it far more challenging than ever before for issuers to balance fraud mitigation with a frictionless cardholder experience.

Your cardholders worry about the safety of their hard-earned money. Yet, when it comes to their online transactions, they want a smooth shopping experience without annoying authentication requests.

You’re looking for an innovative approach to fraud prevention. One that provides a robust means of authentication across portfolios, channels, lines-of-business and geographies. And the flexibility to adapt to your business rules in real time, as well as the ability to combat crucial events, like flash fraud.

Payment Security Suite combines Arcot's leadership in EMV 3-D Secure with real-time fraud risk learning and scoring derived from billions of eCommerce authentication transactions and world-class data models. Our patented predictive analytics give you the insights you need to reduce losses as well as false declines. And it is the only solution that delivers true, real-time analysis—in mere milliseconds.

Analytics Powered by Market-Leading Data Science

Payment Security Suite uniquely taps into the comprehensive network of cardholder transaction data—both recent and historical—across issuers and merchants. These analytics use neural networks and machine learning to gain insights from, and adapt to fraud patterns in real time. It is this instant analysis of multidimensional, large-scale data that enables the transparent fraud assessment of eCommerce transactions.

Predictive neural network authentication models are powered by advanced machine learning techniques that leverage data from EMV 3DS and the Arcot's data network. These models enable accurate assessments in real time, discerning between legitimate and fraudulent transactions.

We maintain and analyze a vast amount of transaction data such as device characteristics, IP address, geolocation, transaction amount and much more. This provides the advantage of understanding a transaction in the context of what is normal for each individual device and cardholder. Payment Security Suite employs a self-learning scoring model, which analyzes and compares historical and real-time transaction behavior. Card and device profiles are then immediately updated, influencing the model to reflect the most current and accurate risk score.

The system continues to learn from every purchase transaction in real time. This modeling is done across the consortium of both issuers and merchants, which yields benchmarks, comparisons and a richer data set upon which to generate the risk score. The evaluation of every transaction is a little smarter than the last, as the data set becomes richer and more tailored. In the end, this analysis is designed to minimize the number of transactions deemed as risky and reduce the number of transactions that require step-up authentication.

Because fraud often occurs from the same or similar batch of bad devices, over a short time period with many cards, issuers often don’t see this activity until well after the fact. To avoid accepting illegitimate transactions, you need behavioral information about a card and/or device in real time.

The platform adapts to fraud patterns in real time by leveraging this transaction intelligence and data across the global network. Its multidimensional view of transaction behavior analyzes and compares connections among card and device activities as they happen across banks, merchants and geographies.

Payment Security Suite enables highly accurate decision-making via a combination of our unique global risk network and our in-house, industry-leading data science team. Leveraging the real-time consortium network has been proven to result in a 25% savings in fraud losses and 35% reduction in false positives compared to single-issuer data. The following figures are based on issuer usage of Arcot's solutions with 3DS v1.0.

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