In today's digital society, consumers are spending more and more time and money online. And this movement cannot be stopped. And where large sums are spent, scammers inevitably appear. In response, merchants and financial services are forced to strengthen their security by adding more and more authentication steps. This, in turn, causes a negative response from payers who want to pay for purchases in one click and not be deceived. The circle is closing, but you can break it using 3-D Secure technology, which protects all transactions passing through any gateway, including ours, at PayOnline.
According to the study “Global Payment Cards 2013-2019”, the volume of payments by bank cards on the Internet is growing faster than in other types of card transactions. Experts predict that by 2019 the number of card transactions on the Internet will reach 34 billion, and their turnover will be $3.9 trillion. With the growing scale, the problem of fraud is becoming more acute: according to the European Central Bank, in 2015, 66% of all fraudulent transactions on bank cards were committed in transactions without the presence of a card (card not present, or CNP) - that is, on the Internet.
Industry experts are striving to stay one step ahead of attackers by updating standards and requirements to protect potentially vulnerable payment technologies. To protect customers' personal data, financial institutions establish multiple levels of access and use additional buyer authentication methods. And while financial institutions' anti-fraud measures become more proactive and aggressive, increased security requirements can create a negative user experience and negatively impact their purchasing experience.
According to research from the Baymard Institute, 68.53% of online shopping carts remain abandoned, that is, unpaid. There are several key reasons for the appearance of “abandoned carts”: the final price does not match the originally stated one, lower prices in another store, inconvenient delivery conditions, and also difficulties in the payment process. Online card payments are considered riskier for a merchant than offline payments due to the increased risk of a chargeback. For this reason, “cardless payment” for goods and services on the Internet requires additional steps and additional information to be entered to confirm the user’s identity.
Many sites require registration using social network accounts, which scares off buyers who are afraid of spam. And even if the client has registered, the seller will require even more information from him during payment: delivery address, contact information, full payment information. Entering this data is inconvenient for the client, and with the growing popularity of shopping from mobile devices, the situation becomes even more complicated. When a user tries to access a website from a smartphone that is not optimized for a mobile device, he encounters many problems: his fingers do not hit the right buttons, autofill does not work, and pop-up fields with answer options do not appear. And even if the site is optimized for mobile devices, there is no certainty that the page with the payment form will also adapt to the size of the smartphone screen and allow you to enter the necessary data.
Research conducted in the USA found that cart abandonment rates can exceed 50% due to 3D Secure authorization. In Russia, this problem is not so acute, since more than 80% of cards issued by Russian banks are signed for 3DS. While 3D Secure provides payers with an increased level of security (thanks to an additional authentication step), they are often criticized for being inconvenient and having a negative impact on conversion rates.
The risk of fraud is most critical for an online store, since it is a direct financial risk. Merchants strive to use 100% protection with 3D-Secure - this shifts the responsibility from the business to the card issuing bank in the event of a fraudulent transaction.
Unfortunately, the experience of using 3D-Secure technology cannot always be called positive for the payer. Despite the proven user dissatisfaction with the 3DS, VISA says its product increases the desire to shop online at sites where the technology is featured and protects shoppers. And in this case, the question is more about informing and educating clients than about protecting them. In the UK, where 3DS is more common, customers are accustomed to this procedure, and the negative effect on payment conversion is therefore less noticeable than in other countries.
Visa and MasterCard plan to introduce 3D Secure 2.0. While major specifications have yet to be announced, the 3DS2 is slated to ditch the unique verification code request format, in favor of a mysterious "invisible authentication" feature.
In modern realities, payment transactions without the presence of a card cannot be problem-free due to the conflicting interests of the parties to the transaction. Consumers want to make secure payments without having to enter a lot of data. Many companies are trying to reduce the number of steps on the path to successful payment, for example, offering autofill fields, autopayments and one-click payments to regular customers. However, these methods still require making at least one purchase and registering on the site with entering personal data. We hope that the introduction of 3D Secure 2.0 will help make payment verification simple and painless for payers.
If this material was useful to you and you do not want to miss other interesting news in the future, subscribe to our blog, leave comments, and if you have a need to organize the acceptance of payments protected by 3-D Secure technology and the Anti-fraud monitoring system, please contact To us, at PayOnline, in any way convenient for you, we will select a suitable payment solution for you.
According to the study “Global Payment Cards 2013-2019”, the volume of payments by bank cards on the Internet is growing faster than in other types of card transactions. Experts predict that by 2019 the number of card transactions on the Internet will reach 34 billion, and their turnover will be $3.9 trillion. With the growing scale, the problem of fraud is becoming more acute: according to the European Central Bank, in 2015, 66% of all fraudulent transactions on bank cards were committed in transactions without the presence of a card (card not present, or CNP) - that is, on the Internet.
Industry experts are striving to stay one step ahead of attackers by updating standards and requirements to protect potentially vulnerable payment technologies. To protect customers' personal data, financial institutions establish multiple levels of access and use additional buyer authentication methods. And while financial institutions' anti-fraud measures become more proactive and aggressive, increased security requirements can create a negative user experience and negatively impact their purchasing experience.
According to research from the Baymard Institute, 68.53% of online shopping carts remain abandoned, that is, unpaid. There are several key reasons for the appearance of “abandoned carts”: the final price does not match the originally stated one, lower prices in another store, inconvenient delivery conditions, and also difficulties in the payment process. Online card payments are considered riskier for a merchant than offline payments due to the increased risk of a chargeback. For this reason, “cardless payment” for goods and services on the Internet requires additional steps and additional information to be entered to confirm the user’s identity.
Many sites require registration using social network accounts, which scares off buyers who are afraid of spam. And even if the client has registered, the seller will require even more information from him during payment: delivery address, contact information, full payment information. Entering this data is inconvenient for the client, and with the growing popularity of shopping from mobile devices, the situation becomes even more complicated. When a user tries to access a website from a smartphone that is not optimized for a mobile device, he encounters many problems: his fingers do not hit the right buttons, autofill does not work, and pop-up fields with answer options do not appear. And even if the site is optimized for mobile devices, there is no certainty that the page with the payment form will also adapt to the size of the smartphone screen and allow you to enter the necessary data.
Research conducted in the USA found that cart abandonment rates can exceed 50% due to 3D Secure authorization. In Russia, this problem is not so acute, since more than 80% of cards issued by Russian banks are signed for 3DS. While 3D Secure provides payers with an increased level of security (thanks to an additional authentication step), they are often criticized for being inconvenient and having a negative impact on conversion rates.
The risk of fraud is most critical for an online store, since it is a direct financial risk. Merchants strive to use 100% protection with 3D-Secure - this shifts the responsibility from the business to the card issuing bank in the event of a fraudulent transaction.
Unfortunately, the experience of using 3D-Secure technology cannot always be called positive for the payer. Despite the proven user dissatisfaction with the 3DS, VISA says its product increases the desire to shop online at sites where the technology is featured and protects shoppers. And in this case, the question is more about informing and educating clients than about protecting them. In the UK, where 3DS is more common, customers are accustomed to this procedure, and the negative effect on payment conversion is therefore less noticeable than in other countries.
Visa and MasterCard plan to introduce 3D Secure 2.0. While major specifications have yet to be announced, the 3DS2 is slated to ditch the unique verification code request format, in favor of a mysterious "invisible authentication" feature.
In modern realities, payment transactions without the presence of a card cannot be problem-free due to the conflicting interests of the parties to the transaction. Consumers want to make secure payments without having to enter a lot of data. Many companies are trying to reduce the number of steps on the path to successful payment, for example, offering autofill fields, autopayments and one-click payments to regular customers. However, these methods still require making at least one purchase and registering on the site with entering personal data. We hope that the introduction of 3D Secure 2.0 will help make payment verification simple and painless for payers.
If this material was useful to you and you do not want to miss other interesting news in the future, subscribe to our blog, leave comments, and if you have a need to organize the acceptance of payments protected by 3-D Secure technology and the Anti-fraud monitoring system, please contact To us, at PayOnline, in any way convenient for you, we will select a suitable payment solution for you.
