Future of eCommerce Software

On October 1st, new regulation goes into effect in regards to fraud in eCommerce software, regarding credit card payment. Liability has now switched from lenders to merchants who haven’t implemented chip readers. Sounds absolutely fabulous doesn’t it? — Upgrade or else.

The solution lenders have been chasing is a two-factor authentication method that has proven results in reducing fraud. Some say that the new policy missed the boat and the effects ultimately won’t reduce fraud. In Europe, their standard is a Chip + PIN combination, which has been the driving factor behind our new payment model. Although the problem is U.S. policy doesn’t include a PIN, but a signature, which still leaves U.S. markets open to fraud.

But back to the story everyone is dying to hear, how will this new authentication policy effect eCommerce with regards to fraud? Since it is impossible to authenticate a chip over the internet, is the only change to the growing eCommerce market the vendors liability to back charges?

Adaptive Software Development

The next wave of fraud could shift from physical credit card theft to eCommerce. The real question is how will we be able to combat this new threat? Software development firms will need to be mindful of these changes when they’re creating new authentication techniques for online shopping carts.

Knowing this information, Clarisoft has already begun implementing new techniques into our systems to help prevent future fraud for our existing clients.

Source: Wired Article