FAC and PROSA reduce fraud in Latin America

PROSA is the region’s leading provider of electronic transactions and one of the largest such companies in the world and has implemented FAC’s unique Visa and MasterCard SecureCode cardholder ‘authentication-only’ solution.

The solution allows PROSA and its acquiring banks in Mexico and Latin America to submit three-dimensional secure requests to FAC’s MPI in advance of the payment authorisation in order to provide more versatility.

PROSA operates one of the most important payment processing switches in the world and deals with more than 1.3 billion transactions a year. It facilitates the majority of transactions made at point-of-sale terminals throughout Mexico and Latin America including American Express, Visa and MasterCard as well as handling the automatic teller machines for HSBC, Santander, ScotiaBank, Banorte, Banjercito, Banca Afirme, Interacciones, Ixe, Invex and Banregio.

FAC’s three-dimensional secure solution enables acquiring banks to determine charge-back liability for online merchants in advance of the actual payment transaction being authorized, providing advance information to assist with reducing fraud and mitigating risk.

“PROSA Mexico was looking for a way to reduce increasing online credit card fraud in the Mexican market,” said Andrea Wilson, CEO for FAC. “This type of implementation was not available domestically so we worked with PROSA to develop a solution to pre-authenticate all of its online consumer transactions in advance of the online credit card payment.

“Our verified by Visa and MasterCard SecureCode only solution is expected to significantly reduce credit card fraud for online merchants in Mexico and Latin America based on the Card Association rules governing three-dimensional secure online charge-back liability shift.”

As a result of this implementation, FAC stated that acquiring Mexican banks and merchants could expect to see an immediate reduction in online Visa and MasterCard credit card fraud by up to 85 % in some cases.