MASTERCARD
SECURE PAYMENT APPLICATION™
AUTHENTICATES ONLINE CARD USERS
Solution Reduces
Chargebacks to Online Merchants,
Protects Consumer
Account Data and Trims Deployment Costs
for Member Financial
Institutions and Merchants
Purchase, N.Y., May
31, 2001 -- MasterCard International today announced its
Secure Payment Application™ (SPA), an innovative solution for securing credit
and debit payments between cardholders, online merchants and members, to
address the issue of cardholder authentication. SPA is one of the latest additions to MasterCard’s suite of
Internet security solutions that address the protection of all parties involved in an online
transaction – the cardholder, the merchant, the card issuer and the merchant
acquirer.
SPA is an
issuer-based security scheme that takes advantage of MasterCard's Universal
Cardholder Authentication Field (UCAF) infrastructure. UCAF is a universal, multipurpose data
transport mechanism implemented by merchants and acquirers for collecting
authentication information generated by issuers and cardholders. Once
collected, this information is communicated to the issuer in the payment
authorization request and provides explicit evidence that the transaction was
originated by a legitimate cardholder. UCAF supports a variety of issuer
security and authentication approaches including SPA, smart cards and more.
Based on an open
specification, SPA allows for easier implementation because it readily
integrates into existing issuer security solutions, including server-based
wallets and pseudo-account numbers. SPA minimizes integration and deployment
costs for merchants, acquirers and issuers. SPA is designed to be flexible,
accommodating payment transactions conducted via smart cards, PDAs, cell phones
and other wireless devices. SPA provides the merchant with the equivalent of a
cardholder signature, thus providing assurance that the issuer has verified the
cardholder prior to completion of the payment transaction.
“Confirming a cardholder’s
identity is essential to the success of making secure payment transactions in
card-not-present environments,” said Art Kranzley, senior vice president,
Global e-Business, MasterCard International. “With the introduction of SPA, MasterCard is delivering a
mechanism that will reduce chargebacks by authenticating the cardholder’s
identity, thus increasing overall confidence in online payments.”
How
SPA Works
Initial deployment of
SPA will be through server-based e-wallets, which automatically fill out order
forms of online merchants. SPA adds a significant security component by
including a unique cardholder authentication value for each transaction that
can be verified by the issuer during payment authorization. Merchants and
acquirers are simply responsible for collecting and passing this cardholder
authentication value, and including it along with other payment information, at
the time of authorization.
In addition, SPA does not
impact the cardholder shopping experience. SPA has no impact on the amount of time required to buy
online or to process a payment authorization. Also, SPA does not require the
use of public key infrastructure (PKI), thus minimizing implementation impacts
for all parties involved.
MasterCard
adds SPA to its full security continuum available for protecting Internet
payments. This allows members and
merchants to customize the proper security solutions for their markets and
customers. This continuum ranges from SSL (Secure Socket Layer), as a minimum
level of security, through the Secure Electronic Transaction™ (SET) protocol,
which offers the strongest form of online encryption and authentication.
MasterCard plans to incorporate SPA into existing issuer security
solutions and is currently in discussions with leading technology firms, such
as Arcot Systems, Inc., The Brodia Group,
Orbiscom, Inc., Trintech, and others to develop SPA systems for members.
“MasterCard’s SPA
is leading the way for the global upgrade of payment systems to support the new
security requirements of electronic and mobile commerce. We’re proud to join
forces with MasterCard to provide SPA integration for our industry standard
electronic wallet,” said Brodia CEO Ron Martinez.
“MasterCard’s introduction of SPA clearly demonstrates its commitment to
providing authenticated Internet payments for both consumers and e-tailers
alike,” said Aidan McManus, executive vice-president of operations and
technology, Orbiscom, Inc. “We are
delighted to be working with MasterCard and providing our technical expertise
to help make it happen. We look
forward to jointly deploying SPA through our Controlled Payment Number
technology and creating the ultimate secure and authenticated solution.”
MasterCard International is a leader in global
e-business. The association is
focused on providing its member financial institutions with customized,
meaningful global e-business solutions that connect them to customers in both
the online and offline worlds. Through
its investment in industry innovation, participation in standards development
and business alliances,
MasterCard is staying in the forefront of technology
integration to enable anytime, anywhere payments across multiple channels and
various devices. MasterCard’s
global e-business solutions include Internet security, smart cards, mobile
commerce/wireless, e-wallets, business to business electronic commerce, and numerous
emerging technologies.
About MasterCard
International
MasterCard International has the most comprehensive
portfolio of payment brands in the world. More than 1.7 billion MasterCardâ,
Cirrusâ and
Maestroâ
logos are present on credit, charge and debit cards in circulation today. An
association comprised of more than 20,000 member financial institutions,
MasterCard serves consumers and businesses, both large and small, in 210
countries and territories. MasterCard
is the leader in quality and innovation, offering a wide range of payment
solutions in the virtual and traditional worlds. MasterCard’s award-winning Pricelessâ
advertising campaign is now seen in 81 countries and in more than 36 languages,
giving the MasterCard brand reach and scope unrivaled by any competitor in the
industry. With more than 21 million acceptance locations, no card is accepted
in more places and by more merchants than the MasterCard Card. In 2000, gross dollar volume exceeded US$857
billion. MasterCard can be reached
through its World Wide Web site at http://www.mastercard.com.
###