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Insights and Expertise

The decline of card PCI DSS compliance requirements will evolve. Tokens are

essentially valueless, so traditional non-compliance fees
numbers and rise of may disappear. Acquirers and processors may introduce
alternate compliance fees ... a discussion for another time.
name validation The transition to tokens will increase security but will
require loyalty companies to utilize the payment account
reference number (PAR) to recognize the cardholder. Ser-
vices like Visa's Account Name Inquiry and Mastercard's
Account Validation will gain traction. These solutions al-
low merchants to validate the name of the cardholder via
an API call. Visa also has an ISO messaging format avail-
able.

These APIs enable merchants to verify a customer's name
against issuer records and independent of a transaction.
This can support card validation, client onboarding and
KYC compliance, or it can be paired with a transaction for
fraud prevention. Push-to-debit providers and wallet apps
By Ken Musante can leverage it to confirm name alignment before transfer-
Napa Payments and Consulting ring funds or pairing cards. Validation does require the
cardholder to disclose their legal name (or name provided
n 1900, suggesting transatlantic air travel would to their issuer).
have earned you a chuckle. By 1950, autonomous
cars sounded like science fiction. Today, AI may be Visa's Account Name Inquiry checks the first, middle and
I automating jobs, but no one misses manually light- surname of the name the issuer has on file. Visa provides
ing street lamps. In time, we'll look back at embossed card three responses for each name: full, partial or no match,
numbers with the same amused nostalgia. as well as an overall match result. This service is available
now but relies on issuers for support. North America and
Originally, card numbers were embossed on the front, the UK are the first areas to enable it. Mastercard's solu-
with precise placement, size and spacing dictated by card tion became available in North America starting in June
network rules. These ensured a clean imprint for physical of this year.
verification. Today, card numbers are on the back of the
card, and, in some cases, like with the Apple card, not list- While helpful, name validation is not infallible. Names
ed at all. Instead, the card information is accessed through can change due to marriage or personal choice, and some
the issuers' mobile app, and the card information is to- card types, particularly government or anonymous pre-
kenized for use. Mastercard will eliminate card numbers paid cards, may lack name data entirely.
from debit and credit cards by 2030. With tokenization,
Merchants and providers may develop rules, based on the
response, as to whether follow up identity verification is
No number? No problem—maybe necessary. The service is not a replacement for AVS but can
be used in conjunction with AVS to further authenticate a
With card numbers disappearing, validating the cardholder.
cardholder’s identity becomes more nuanced. Visa's
Account Name Inquiry and Mastercard's Account I once knew my card number by heart. Now, I have to
Validation services step in by allowing merchants check my wallet just to remember whether it's a Visa or
and providers to verify the name tied to a card, even Mastercard. Maybe that says something about my memo-
outside of a transaction. These APIs return match ry—or perhaps it's progress. The optimist in me says my
results for first, middle and last names and are brain is free to pursue more noble pursuits. The pessimist
already active in North America and the UK. The tech says ... (you probably don't want to know what those pur-
has wide application: client onboarding, KYC, fraud suits are).
prevention, and more.

But it’s not a silver bullet. Some cards, like anonymous As founder of Humboldt Merchant Services, co-founder of Eureka
prepaid or government-issued, lack name data, and Payments, and a former executive for such payments innovators as
names can change over time. Issuers must also support WePay, a division of JPMorgan Chase, Ken Musante has experience in
these tools for them to function. Even so, this is a all aspects of successful ISO building. He currently provides consulting
big step forward in card-not-present environments, services and expert witness testimony as founder of Napa Payments
where identity verification has long been a weak link and Consulting, www.napapaymentsandconsulting.com. Contact him
in the payments chain at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
linkedin.com/in/ken-musante-us.
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