More and more online retailers use 3D Secure as a prevention tool for fraud – but about 40% of merchants in the UK are still reluctant to implement 3D Secure because they fear the extra step in check outs will lead customers to cancel their purchase, says Dursaff Ibrahim
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There is an increasing trend to deploy 3D Secure technology: So far, 63% of e-tailers use 3D Secure as a fraud prevention tool, the second e-business benchmark report by Sage Pay found. But that means almost 40% are still reluctant to use 3D Secure.
The survey also found that only 12% of e-tailers had little concern over security, which in turn means that a staggering 88% of retailers offering their services online actually are worried. More than a third of e-tailers said they had lost revenues in the past. With the continuing rise of online sales volume, having a simple but efficient payment mechanism is therefore essential
The additional check-out step with 3D Secure may lead to drop-outs because consumers may get distracted and forget what they were doing when making the purchase, resulting in an uncompleted or cancelled transaction, merchants argue. According to Simon Black, managing director at Sage Pay this is the reason why 37% of e-tailers still do not use 3D Secure. In fact, 80% of e-tailers said they used CV2 as the main tool of preventing fraud.
But Black argues that 3D Secure can almost eliminate fraud for businesses. The password and PIN code for 3D Secure is not written anywhere on the card. Therefore, it provides greater security than CV2 code because it is not printed on the card. Businesses are slowly but steadily realising the effectiveness of 3D Secure.
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By GlobalDataIf there are a lot of steps in the check out process it may stand in the way of completing a transaction because there are more opportunities for something to go wrong. When 3D Secure was introduced, it was an additional step that popped out in a new window. Since then, some companies have managed to embed the stage into the same checkout
, he says.
Missing revenue opportunites
Making online sales and purchases simpler for customers and more secure for merchants is essential- especially considering the value of online purchases has risen by 14% to £5.2bn ($8.1bn) in the twelve months to August, according to research by Capgemini.
Therefore, Black argues, the 37% of e-tailers that do not use 3D Secure are not seizing opportunities to improve customer experience – such as making sure the payment type are presented clearly and ensuring there is a flow from putting goods in your basket to entering your bank details to make the purchase.
High-performing businesses do focus on customer experience including the payment pages and that there are things that can be done to make it much clearer to the consumer what they need to do next. Depending on what budget youve got and what your payment provider can offer you, you can fully still integrate the web pages but still outsource your whole process. Black argues.
Fraud is a big issue for many online businesses which explains the emphasis that is placed on security strategies by payment gateways. With the introductions of the fraud prevention tools it seems there is yet to be a single, successful method of providing a complete protection against fraud.
