Vision 2014: To Trust or Not To Trust

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To trust or not to trust

Ori Eisen 41st Parameter – A part of Experian

#vision2014

2 © 2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.

Customers love to buy with mobile devices

15% increase in

online purchases

35% increase in

mobile devices

Consumers aren’t simply

“window shopping” or comparing

prices with their mobile devices;

they are shopping on them now

as well

New study data released from 41st Parameter, December 2013


Increased mobile activity means less trust

You really don’t know

most of your online

customers

Can’t recognize = Can’t authorize


If you can’t trust who’s coming to your site to buy…

…you are declining

legitimate purchases

unnecessarily just because

you are uncertain


Facts that may surprise you…

Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014

17% report having had an online

transaction declined

$40B lost each year due to false positives

that could be reclaimed


Ever wondered how

your customers feel

when their credit cards

are declined online?


83% feel this way



When customers are declined they…

Unnecessary operational costs

Decreased loyalty

Interchange loss

Lost revenues

Called the issuer 48%

Source: TrustInsightSM survey of online consumers who had a CNP transaction declined,

n=1,000 – January 2014

34% Used a different card

24% Used another

payment method

14% Decided not to purchase


Who does your consumer blame?

Credit Network 40%

Online

Merchant 32%

Issuing Bank 28%

They blame

you…



TrustInsightTM

Improving customer service

and loyalty


Birds of a feather...

Security blanket post EMV 4

3 Reduced operational

costs

1 Better customer

experience

2 More profitable


Customer is king

Don’t let the

perceived lack

of trust ruin your

most important

relationships…


Portfolio of 100M cards:

► ~$500M in added traffic

► ~$10M in interchange

► ~$10M in APR fees

Reclaiming unwarranted declines

► ~$120B transactions declined

► ~$40B were legitimate

Who doesn’t want to make more $?

…high level estimated benefits

between $30M and $295M/year… “ – Top-10 issuer on value with 10% salvage rate

and 10% merchant adoption rate ”


Drive down operational costs

Less complaints.

Less overall cost.


Reduce additional validation checks during checkout

Security blanket to curb CNP fraud losses post EMV

Allows good customers through when CNP models will tighten up post EMV

You’ll be in a more secure place


CNP fraud rose with EMV adoption in Europe

U.S. is the next market to adopt EMV by 2015

Reduce false-positives when fraud strategies clamp down

eMerchants face trust issues post EMV chips


Scattered customer data benefits no one

earls.com

Buying patterns

Device used

emporium.net

Methods of payment

Time online


Holistic views benefits all

Buying patterns

Device used

Methods of payment

Time online

earls.com

Methods of payment

Time online

Buying patterns

Device used

emporium.net

✔


Data sent one-way hashed SHA-256 – never PII

Simple API for merchants and issuers – easy to integrate

No impact to customer experience, invisible

Participants benefit from pooled data’s network effect

Trust… it’s a good thing


For additional information, please contact:

[email protected] | @orieisen

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Vision 2014: To Trust or Not To Trust