India 7 December 2016: Response from Visa to the RBI circular dates 6 December 2016 titled: Card Not Present transactions – Relaxation in Additional Factor of Authentication for payments up to ` 2000/- for card network provided authentication solutions
· This is a welcomed move by the RBI as it will help streamline the eCommerce checkout process while maintaining adequate levels of security for small value transactions (below Rs.2,000)
· While the circular does not permit the complete elimination of an additional factor of authentication it allows a network to authenticate a cardholder for transactions below the prescribed threshold instead of the Issuing bank as is the case today
o This is however permitted only after the first transaction carried out by the cardholder is duly authenticated by the Issuer
· We note that there has been friction involved with the authentication methods currently used that has impacted transaction completion rates, particularly with commerce moving to smartphones where screens and keypads are smaller
· Network led solutions that are designed for a wide range of devices such as PCs, tablets and smartphones can potentially improve card holder experience by
o Eliminating the need to redirect to Issuer pages and thereby eliminating multiple steps
o Adapting experience as per user’s device size
o Eliminating the need for entry of card details and address for every transaction
o Creating a uniform experience across merchants
By T.R Ramachandran - Group Country Head - India & South Asia, VISA.