Retail Logic fights rising CNP fraud

CNP-Solution delivers greater protection for online retailers and ‘new high street’ shoppers
(Cartes, Stand 4S045, Paris, 18th November, 2003): The rising tide of Cardholder Not Present (CNP) fraud today faces a tough new adversary as Retail Logic, one of Europe’s leading developers of card processing solutions, launches its comprehensive CNP-Solution package. Retail Logic’s CNP-Solution is aimed at online businesses, mail order companies and traditional retailers with growing sales generated through call centres, interactive voice response (IVR) systems and online storefronts.

Retail Logic’s announcement follows hot on the heels of figures released by the Association for Payment Clearing Services, which highlighted a worrying 33 per cent increase in CNP fraud over the last two years, in the UK alone. With significant effort being applied to tackling in-store card fraud through the introduction of new international smart card standards, such as the UK’s Chip & PIN programme, criminals are increasingly switching their attention to a softer target – Cardholder Not Present.

“CNP is the new battleground for card fraud – especially as the ‘new high street’ grows in popularity with consumers,” said Tim Stratton, Managing Director of Retail Logic. “For example, e-commerce transactions are 15 times more likely to be disputed and charged back than traditional transactions. CNP-Solution helps retailers detect, reduce and prevent payment card fraud and is fully compliant with all international card standards including Card Security Code checking and the new Verified by Visa and MasterCard SecureCode initiatives.”

“We seem to be finding solutions for face-to-face fraud, but we shouldn’t forget that fraudsters use other means,” says Colin Grannell, Managing Director Visa UK. “CNP fraud is bound to grow, unless new measures are put in place. Acquirers need to be saying to retailers, ‘this is what you need to do when you take orders over the phone and online’. Having shut one door we don’t want to leave another open.”

Retail Logic’s CNP-Solution integrates existing software with new products and functionality, to provide a complete system that offers maximum protection against CNP fraud. The software addresses card verification, payer authentication, risk management and card authorisation together with the best security protection available:

●	Solve/SE – authorises credit and debit card transactions and is used by the majority of leading UK high street retailers. Solve/SE is the only proven, single system that can handle transactions from any form of payment card in any environment
●	CNP-Solution – provides the latest card verification techniques to be adopted, including the checking of Card Security Codes and verifying cardholder address details against an Address Verification System
●	Silverfleet-Opal – a new merchant plug-in, enabling merchants to benefit from issuer payer authentication initiatives – Verified by Visa and MasterCard SecureCode. Silverfleet-Opal is the first member of Retail Logic’s new family of products developed using the latest JAVA programming techniques, ensuring both high performance and portability across all hardware platforms.
●	Risk Manager - automatically detects high-risk orders and allows them to be individually assessed before a decision is taken to accept or reject the transaction. Businesses can develop their own rules under Risk Manager, based on their individual assessment of risk, to deliver powerful but flexible security and allowing transactions to be accepted that would previously have been declined by less sophisticated methodologies, such as rejection based on geographic location.
●	RMLink, a new product from Retail Logic, seamlessly integrates Risk Manager with Solve/SE and other systems, allowing transactions to be automatically routed to the appropriate application.
●	Encryption - CNP Solution ensures card details are secure at all times and encrypts files using the strongest 3DES encryption standards and offers SSL based authentication capability. These advanced security features make server based systems far less vulnerable to the types of attacks experienced by US retailers.

“CNP fraud is having an increasingly serious effect and the position is set to worsen if retailers fail to take charge,” added Stratton. “Many consumers are still wary about shopping on ‘the new high street’. But by using our new CNP-Solution portfolio, responsible retailers will be able to protect themselves against financial losses, while also looking after their customers.”
Retail Logic will be demonstrating CNP-Solution at the Logic Group’s stand (4S045) at Cartes.

Notes to Editors

About Retail Logic
The Retail Logic team has been providing payment processing software for more than 15 years. Covering any form of payment card and transaction environment, Retail Logic’s software handles more than £70 billion a year in the UK alone.

Mark McMurtrie
Marketing Director
Retail Logic
+ 44 (0) 7798 873 465
Mark.McMurtrie@retail-logic.com