Online payments are always a bit of concern for customers as well as merchants alike due to security reasons. We often hear about the news of online frauds, hacks, stealing of information, etc.
But this is now going to change with the introduction of 3D Secure 2.0, which is an element of the new EU legislation called Payment Services Directive known or PSD2.
What is 3D Secure 2.0?
3D Secure 2.0 is the latest version of the 3D Secure protocol. With its Frictionless Flow feature, it promises a quick and hassle-free checkout.
European Union earlier instructed the E-commerce retailers to enable 3D Secure 2.0 by the 14th of September because of Strong Customer Authentication” (SCA). However, the timeline has been pushed to December 2020 by the European Bank Authority due to some confusion and inconsistency of the online retailers.
New rules and guidelines are being implemented by the card schemes to enable the issuers and acquirers to comply with. These new requirements that are part of PSD2 will undoubtedly enhance the security of online transactions.
How Apcopay Makes the Process Easier?
Apcopay is the ultimate solution to accept 3D Secure 2.0 transactions. Their unique way of gathering data inside their hosted page enables frictionless payments. All the processes are aligned with the technical requirements.
What are the Benefits of 3D Secure 2.0 for Online Retailers?
There are many benefits of 3D Secure 2.0 for online retailers.
· Secure Authentication: The new method of authentications will gather data from the cardholder to authentic a transaction. Unlike the previous method, it will not only rely on a static password. This will ensure secure authentication and reduce fraud transactions.
· Customer Satisfaction: The merchants will be able to provide a better experience to their online customers. This is because the enhanced security will rely on biometrics or OTP. So even if a customer forgets his or her password, he or she can continue shopping. Moreover, the added security will build trust between a customer and a merchant by reducing fraud transactions.
How 3D SECURE 2.0 will Change the Checkout for the Merchants?
With more secure authentication and better user experience, there are chances for more checkout conversions and fewer reductions. Since 3D Secure 2.0 gives priority to the mobile and tablet transactions, it will improve the checkout experience for those devices. This will also increase conversion rates.
As Payments Journal reported in March 2019, Ennio Ponzetto who is the Chief Revenue Officer of TAS USA, 3DS 2.0 has informed them that 3D Secure made it possible to make an 85% reduction in checkout times and 70% cart abandonment.
How 3D SECURE 2.0 will Reduce Fraud for Issuers and Acquirers Alike?
Interestingly, the added security comes with a protocol called Transaction Risk Analysis or TRA. The issuers and acquirers will perform TRA for all transactions based on the spending history of a cardholder. The location of both the parties involved in any transaction will also be analyzed in this regard. Thus it will be easier to detect fraudulent behaviour of any sort and stop them.
Last but not least, 3D Secure 2.0 is a big step in the world of e-commerce and a great boom for online retailers. It is a great way to leverage technology to enhance the security of online transactions and minimize fraud cases. Most of the online retailers understand the need for an added security protocol which can reduce chargebacks and provide added peace of mind.