In an era where online fraud has escalated to unprecedented levels, with merchants enduring over $40 billion in annual losses and a staggering 69% surge in fraud rates each year, the need for more secure and convenient payment methods is crucial. Bridging the problematic gap between in-store and online transactions, Burbank, a leader in payment technology based in Wales, has unveiled an innovative solution known as Card-Present over Internet (CPoI). This groundbreaking technology, presented in a live demonstration with industry leaders, introduces a tap-and-PIN payment method for e-commerce, akin to in-store transactions.
CPoI combats the growing challenge of online fraud by requiring both a physical card and a PIN for transactions, ensuring that only genuine cardholders can complete them. Unlike conventional methods that rely heavily on storing card details online—susceptible to data breaches—CPoI mirrors the security and ease of in-store purchases. This approach eliminates the risks associated with online storage and reduces the dependence on overly complex authentication processes.
By minimizing false positives, which mistakenly decline legitimate payments, CPoI helps merchants fight fraud, decrease chargebacks, and improve transaction approval rates. False positives account for a whopping $443 billion loss annually for merchants, with 65 percent of blocked transactions being erroneous. This not only affects the merchant financially but also drives away 41 percent of affected customers, who never return, causing a significant dent in customer retention and revenue. The addition of CPoI, therefore, marks a revolutionary shift in addressing these long-standing issues within the e-commerce landscape.
Addressing Fraud in E-Commerce
Online merchants have been grappling with an alarming increase in fraud rates, which have shown no signs of abating. Burbank’s CPoI emerges as a potent remedy to these escalating challenges. By mandating the use of a physical card and PIN, CPoI ensures that only the legitimate cardholder can authorize a transaction. This fundamental change addresses the main vulnerability of stored card details, which have traditionally been a prime target for cybercriminals. The innovation offers a layer of security akin to in-store purchases, making online transactions significantly safer.
Moreover, minimizing reliance on complex and often cumbersome authentication procedures, CPoI simplifies the customer experience. Users no longer have to navigate through multiple layers of verification that might deter them from completing a purchase. This balance of high security and ease of use is a critical aspect that sets CPoI apart, potentially steering a new direction in online payment methodologies.
Significantly, CPoI also aids merchants by reducing the rate of false positives in transaction approvals. False positives have plagued online transactions, leading to considerable financial losses for merchants due to mistaken declines of legitimate transactions. These declines often result in customer dissatisfaction, with many never returning to the retailer. CPoI’s effective authentication method ensures only invalid transactions are blocked, thus maintaining customer trust and loyalty.
Enhancing Customer and Merchant Experience
Justin Pike, CEO of Burbank, highlighted the pivotal advantages that CPoI brings to the table for merchants. By eliminating the need for additional anti-fraud technology, CPoI not only simplifies operations for merchants but also enhances the customer experience without incurring extra costs. The technology’s effective approach to fraud prevention is expected to have a lasting impact on the e-commerce landscape, promising a future where online transactions closely mirror the seamless security and convenience of in-store purchases.
Beyond security, CPoI’s impact extends to streamlining the overall payment process for users and merchants alike. With CPoI, merchants can expect improved transaction approval rates, minimized chargebacks, and a significant reduction in fraud-related costs. The enhanced approval rates are particularly notable, as they mean more sales are successfully completed, resulting in higher revenue for businesses. Coupled with a decrease in chargebacks—which often come with additional fees and administrative burdens—CPoI places merchants in a more favorable position both economically and operationally.
As for the customer, the removal of hurdles present in traditional online payment systems translates to a smoother and more satisfying shopping experience. The ease of using a physical card and PIN reduces friction during checkout, potentially increasing customer satisfaction and loyalty. This is a noteworthy advancement in an age where user experience dictates consumer decisions.
Looking Ahead
In an era marked by skyrocketing online fraud, with merchants incurring over $40 billion in losses annually and fraud rates climbing 69% each year, the necessity for secure and easy payment methods is more critical than ever. Burbank, a leading payment technology firm based in Wales, has launched an innovative solution called Card-Present over Internet (CPoI) to bridge the gap between in-store and online transactions. This revolutionary technology, demonstrated live with industry leaders, offers a tap-and-PIN method for e-commerce payments, similar to in-store transactions.
CPoI effectively tackles online fraud by requiring both a physical card and a PIN for each transaction, guaranteeing that only genuine cardholders can make purchases. Unlike traditional methods that store card details online and are vulnerable to data breaches, CPoI mimics the security and ease of in-store payments, eliminating the risks tied to online storage and complicated authentication processes.
CPoI also addresses false positives, reducing erroneous declines of legitimate payments, which cost merchants $443 billion annually. With 65% of blocked transactions being wrongly flagged, these errors not only cause financial loss but also alienate 41% of affected customers, who never return. CPoI’s addition marks a significant leap in resolving these persistent e-commerce challenges, enhancing both security and customer retention.