Reduce fraud with3-D Secure Service
All European merchants will need to be able to support 3-D Secure 2 by the end of 2020. This puts pressure on merchants to integrate with a 3-D Secure 2 provider quickly.
1. It’s quick!
With 3-D Secure 2, transaction time will decrease by 85%. This is possible because the amount of data exchanged between cardholder, merchant and issuer is 10 times bigger than before.
2. It keeps merchants out of chargeback-trouble
3-D Secure 1 was clunky and bad for sales due to forgotten passwords and cart abandonment. But the incentive for merchants to use 3-D Secure has always been that the liability for fraud shifted to the issuing bank. Suddenly, it was the big banks instead of the tiny online stores who were responsible when fraudulent transactions occurred.
3. It’s customisable
Another great thing about 3-D Secure 2 is that it can be customised. Online stores simply don’t have to go all in. They can request their acquirer and gateway to have 3-D Secure activated for high-risk transactions or for transactions of specific amounts. Conditional 3-D Secure has been proven to be very useful in increasing the number of retained customers.
4. It’s a sales machine
Thanks to the additional data gathered, authentication may become unnecessary in many cases. This will mean a 70% decrease in cart abandonment and more sales for merchants.
User Experience Upgrade
The improved user experience of 3-D Secure 2 is important because it helps reduce the negative impact 3-D Secure has on conversion. In the challenge flow of 3-D Secure, the cardholder can authenticate a payment by using for example fingerprint or facial recognition.
Compliant with PSD2 and SCA
SCA will apply to customer-initiated online payments. This means that all bank transfers and most card payments will require SCA. On the other hand, ‘Merchant-initiated’ transactions, like subsequent recurring transfers, will not require SCA. 3-D Secure covers all requirements of SCA and will therefore be the go-to authentication method.
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Frequently Asked
Questions
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