The partnership between UATP and Burbank aims to introduce Card-Present over Internet (CPoI) solutions for airline merchants. This collaboration seeks to address challenges related to fraud, chargebacks, and transaction accuracy in digital commerce.

Under the CPoI system, online customers can tap their physical payment card on a mobile device and enter a PIN. This mimics the verification process used in traditional retail settings, treating transactions as card-present payments. Such treatment maintains issuer liability while enhancing security for both merchants and consumers.

Reducing fraud and false positives

Data from the industry indicate that online merchants collectively lose over USD 40 billion annually due to fraud and chargebacks. Payment fraud has increased by nearly 70% each year, with chargebacks rising more than 50%. Merchants also encounter significant costs from false positives, where legitimate payments are declined, resulting in estimated global losses exceeding USD 400 billion annually.

UATP representatives highlighted that the partnership aligns with their efforts to collaborate with innovative payment technology providers. The aim is to improve transaction reliability and efficiency for airline clients by reducing processing expenses, fraud-prevention costs, and enhancing authorization rates, which are typically higher in card-present transactions.

Burbank officials saw this agreement as a move toward integrating store security standards into online payment environments. They believe it will significantly reduce fraud and false declines while providing a more consistent payment experience for consumers.

The initiative is expected to initially target airlines but eventually expand to other sectors. Key benefits include lower transaction costs, reduced exposure to fraud, and enhanced protection for both merchants and their customers.