Visa Inc (NYSE:V) is closing in on the acquisition of CardinalCommerce as it moves to ease transactions and increase the security of online transactions. The acquisition of the e-commerce payment authentication giant should go a long way in bolstering the security features of Visa’s authentication systems.

Visa-CardinalCommerce Merger

Thanks to the acquisition, Visa should be able to come up with new security features to online transactions as it continues to explore ways of curbing fraud as well as supporting e-commerce. Merchants and issuers will also be able to view the origin of transactions thanks to the combination of Visa’s global network and Cardinals authentication platform.

Senior vice president of risk and authentication products at Visa, Mark Nelsen, expects the merger of the two systems to help reduce the risk of fraud on merchants as well as issuers.

“By helping merchants, acquirers and issuers better distinguish between good and bad transactions, Visa is in an even better position to strengthen consumer trust in digital payments, help merchants grow their businesses and accelerate innovation in commerce,” said Mr. Nelsen.

Visa has already confirmed plans to integrate tokenization into Visa Checkout, a move it says will accord merchants a more seamless integration and delivery.

Cardinal Patent Portfolio

Cardinal Joins Visa with 63 patents, touching all the proprietary inventions that have made it a leader in authentication. The company platform currently analyzes 400 points of data on each transaction something that goes a long way in reducing the risk of fraud. The payment platform also monitors up to 750, 000 merchant identification numbers thus helping verify whenever a customer makes an online purchase.

Visa and CardinalCommerce are yet to disclose financial terms of the transactions. However, Cardinal will continue to operate as a standalone brand even as the payment giant moves to take make good use of  its capabilities on the authentication front. The transaction should close sometime in the second quarter of Visa’s 2017 fiscal year.

Visa stock was down by 2.44% in Thursday trading session, ending the day at lows of $75.43 a share.