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Table of Contents

Lead Story

2016: An action-packed year for payments

Patti Murphy


Industry Update

New PCI guidelines address scoping, segmenting

Fintechs inch closer to bank status

Gas station EMV deadline reset to 2020

M-commerce dominates early holiday shopping


Digital ID, the final piece in mobile wallet

Matt Bruno

Customer data management insights


Closing sales, opening relationships

Dale S. Laszig
DSL Direct LLC


Street SmartsSM:
Minimalism: A path to financial freedom

John Tucker
1st Capital Loans LLC

The CFPB takes on prepaid

Brett Husak
National Bank Services

Insights from puppy training applied to payments

Steven Feldshuh
Merchants' Choice Solution East

Multilayered authentication: challenges now, rewards later

Evi Triantafyllides

Company Profile

International Bancard Corp.

New Products

Omnichannel platform for in-store, online commerce

Lightspeed eCom
Lightspeed POS Inc.


Intimidated by large groups? Not to worry


Letter from the editors

Readers Speak

Resource Guide


Skyscraper Ad

The Green Sheet Online Edition

December 26, 2016  •  Issue 16:12:02

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Multilayered authentication: challenges now, rewards later

By Evi Triantafyllides

Remember when payment authentication was as simple as signing a check, the validity of which was then confirmed by comparing it against … yet another signed document? The quest for a less error-prone procedure has led to dramatic leaps in precision, and the days of a single, simple authentication method are long gone.

With payment software development reaching unprecedented levels in the past years and a general evolution in the fintech space, authentication is shifting to entail accurate, sophisticated and multilayered procedures delivered by diverse players within the payments chain .

Multilayered authentication

Passwords, phone numbers, fingerprints, the name of your father's great, great grandfather ‒ your entire DNA string please. In an effort to categorize the various authentication techniques that have come about, the generally accepted, three-tiered classification system has emerged. It includes knowledge-based, ownership-based and inherence-based authentication, described as follows:

Multilayered authentication, which involves using more than one type of authentication, is expected to play a part in bringing today's proliferating data hacks to a standstill. Pairing different authentication types is becoming standard procedure, and two-factor authentication an industry buzzword.

Authentication in the larger payments picture

What does authentication mean in the grand scale of the payments arena? With MarketsandMarkets reporting a 19.7 percent annual increase in biometric authentication techniques, and with those expected to be valued at $10.8 billion by 2020, authentication is a space to pay attention to, and one that will shape the future of how payments are done.

Moving away from the archaic, straightforward signature model has proven to be multifaceted and clunky, with different authentication methods competing for legitimacy. While there is no way to predict which authentication methods will become the norm, the path toward sophisticated, manifold authentication is uncontestable.

Eventually, rising costs of technology investments and escalating fraud levels will reach their peaks. Monetary investments will start to scale, and return on investment will kick in, turning a double whammy of deficits into a double win of declining infrastructure costs and decreased fraud. Additionally, fraud liability will shift away from customers and merchants (who will now be doing their share by participating in authentication programs), and accountability will increasingly fall upon card brands, banks and the devisors of authentication programs.

Indeed, what now seems to be a messy mix of varied authentication tools should be appreciated as efforts towards securing a more profitable, protected payments future.

Evi Triantafyllides is the Marketing Director at PAAY, a software solution that qualifies e-commerce transactions at lower interchange rates and shifts liability for e-commerce fraud away from merchants, to the card issuers. Evi was the first full-time employee at PAAY. She is responsible for the company's marketing, and at the same time focuses on ISO relations and partnerships. Find out about PAAY at or reach out to her directly at

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | Humboldt Merchant Services | Impact Paysystems