ActivCard Signs Agreement With Mastercard

Thursday 28 April 2005 09:47 CET | News

ActivCard has signed an agreement with MasterCard to deliver the first Chip Authentication Program (CAP) approved authentication server that is capable of operating over multiple channels.

MasterCards member banks will use the ActivCard 4TRESS Authentication Server to authenticate users and transactions in non face-to-face environments, such as e-commerce, online and phone banking, Mail Order/Telephone Order (MO/TO) and m-commerce. When using MasterCard CAP for two-factor authentication, a cardholder simply inserts the card, which may be a standard debit or credit card, into a small hand-held CAP compliant reader, such as the ActivReader Solo(TM). The user enters the PIN and the card generates a one-time-password, which is displayed by the reader. The card can also be used to verify or sign a transaction. The one-time-password or signature is then submitted to the bank through the website or over the phone, where it is validated by the authentication server in order to verify the identity of the cardholder and specific transaction parameters. With ActivCard 4TRESS Authentication Server issuing banks can have a single common authentication server across all channels, integrating with existing back-end applications, and supporting other or existing forms of authentication such as tokens, certificates, SMS passwords or biometrics. CAP is a natural extension to an EMV Chip infrastructure, enabling members to leverage their existing investment to address the issue of payment security and convenience across different virtual payment channels. CAP can turn a Card Not Present (CNP) transaction into a Card Present Transaction, reducing chargeback costs and fraud due to CNP, and has the potential to significantly increase card payment volumes from e-commerce and services offered through secure remote banking. CAP is part of the OneSMART MasterCard program, which provides customers with instant access to an assortment of value-added applications and support services that strengthen the business case for chip migration. Beyond CAP, MasterCard offers OneSMART Pre-Authorized, for driving more transactions from cash to card, and OneSMART PayPass, a contactless payment program. The OneSMART MasterCard program also includes a range of pre-configured smart card packages that help MasterCards customers get to market fast.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce