Carding Forum
Professional
3D-Secure is the generic name for anti-fraud services developed by MasterCard, Visa, Diners & Discover, American Express and JCB. All solutions are aimed at identifying the current cardholder at the time of his online purchase.
When placing an order in the online store, the buyer must provide not only the credit card number and CVV code, but also their security code (simple authentication) or a dynamic one-time password (strong authentication). This password is verified instantly by the card issuer. In this way, 3D-Secure prevents online card fraud and protects merchants from costly fraudulent refunds.
However, in addition to the positive characteristics of the solution, 3D-Secure can also lower the conversion rate in cases where potential customers of the online store cannot enter the correct password (for example, they forgot the password, the code generator is not at hand, the 3D-secure pop-up window is not optimized for mobile device, etc.).
A study by payment service provider Ingenico shows the differences in the use and adoption of 3D-Secure technology around the world. While in some countries, such as the Netherlands or the UAE, more than 60% of card transactions are authenticated using 3D-Secure technology, in other countries (USA, Brazil, Mexico) there are less than 5% of such transactions.
The study also presents the views of many companies using 3D-Secure technology. 49% of respondents note a significant (more than 50%) decrease in the number of cases of refunds when using 3D-Secure technology. However, 61% of online businesses report a 10% increase in bounce rates. The main challenge for these businesses, according to Ingenico, is to determine which combination of fraud prevention solutions should be used to optimize the sales process.
In addition, a study by Ingenico reports that 3D-Secure technology is not sufficient to address online payment fraud, but it can reduce risk in some cases, especially when combined with a transaction risk analysis tool.
When placing an order in the online store, the buyer must provide not only the credit card number and CVV code, but also their security code (simple authentication) or a dynamic one-time password (strong authentication). This password is verified instantly by the card issuer. In this way, 3D-Secure prevents online card fraud and protects merchants from costly fraudulent refunds.
However, in addition to the positive characteristics of the solution, 3D-Secure can also lower the conversion rate in cases where potential customers of the online store cannot enter the correct password (for example, they forgot the password, the code generator is not at hand, the 3D-secure pop-up window is not optimized for mobile device, etc.).
A study by payment service provider Ingenico shows the differences in the use and adoption of 3D-Secure technology around the world. While in some countries, such as the Netherlands or the UAE, more than 60% of card transactions are authenticated using 3D-Secure technology, in other countries (USA, Brazil, Mexico) there are less than 5% of such transactions.
The study also presents the views of many companies using 3D-Secure technology. 49% of respondents note a significant (more than 50%) decrease in the number of cases of refunds when using 3D-Secure technology. However, 61% of online businesses report a 10% increase in bounce rates. The main challenge for these businesses, according to Ingenico, is to determine which combination of fraud prevention solutions should be used to optimize the sales process.
In addition, a study by Ingenico reports that 3D-Secure technology is not sufficient to address online payment fraud, but it can reduce risk in some cases, especially when combined with a transaction risk analysis tool.
