In the U.S., most of the payments are done through credit cards that expose the vulnerability in payment security. This vulnerability in payment security translates into credit card fraud. Businesses can prevent fraudulent transactions if they embed 3D secure code into credit cards. Therefore, it is necessary to have some countermeasures that would enhance payment security. A coalition has been formed by the National Retail Federation (NRF) in association with other major merchant providers aimed towards strengthening payment security in the US. The alliance includes the Food Marketing Institute, the National Association of Convenience Stores, the National Grocers Association, First Data’s Star Network, and SHAZAM network.
Secure Payments Partnership as it is officially known focuses on the establishment of open standards, user authentication, as well as competition in network routing, among other payment security concerns.
The National Retail Federation (NRF) issued a statement regarding the new coalition where it sought to leverage recent technological innovations that included biometrics (such as fingerprints, facial recognition, and iris scanning), the use of artificial intelligence, mobile payments, IP verification, and geolocation. NRF’s emphasis on these recent innovations is solely as a preventive measure for identity theft.
The security standards in the U.S. are largely monopolized—without sufficient inputs from competing card networks, merchants, consumers and financial institutions—by two financial services giants- Visa and MasterCard and precisely for this very reason, the US lags behind the rest of the world in card payment security.
For several years, the US has issued credit cards with magnetic stripes rather than the more secure microchip EMV (acronym for the three companies that pioneered the chip: Europay, MasterCard, and Visa) cards. The whole point of the EMV transition is to make the U.S. payment technology in sync with the rest of the world where the U.S. issued cards do not allow for the more secure PIN verification.
In this relentless pursuit of new security measures, a common ground can be founded with regards to the alliance, Secure Payments Partnership and consequently any other collaboration that can result in strong security for the consumers.