As e-commerce and mobile commerce continue to expand, payment providers are working to strengthen online transaction security without disrupting the customer experience. Research from Mercator Advisory Group highlights how the latest version of 3-D Secure is helping reduce friction at checkout while providing issuers with significantly more transaction data to evaluate potential fraud risk. By supporting mobile apps, tokenized transactions, and streamlined authentication flows, 3DS2 represents an important evolution in securing card-not-present payments as digital commerce volumes continue to rise.
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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – The State of Debit Card Fraud
- Simpler, more user-friendly, checkout process because cards are auto-enrolled
- 3DS2 gathers & sends up to 150 data points so issuers can evaluate fraud
- Specifications have been added for non-browser-based apps which didn’t exist for 3DS
- Version 2 also accommodates account tokens not just card numbers in the transaction flow
- Version 1 of 3 Domain Secure was notoriously problematic – it required consumers to register cards and authorize every purchase
- Version 1 of 3DS caused consumers to abandon their shopping carts due to friction
About this report
Managing debit card fraud needs a new approach. Debit card fraud since implementation of EMV is well managed despite a barrage of threats, but as the shift in transactions toward card-not-present channels continues and criminal tactics evolve accordingly, fraud prevention takes on a more critical role. Cardholders can be more effectively engaged in the fraud prevention effort if it is viewed as a product relationship service not a back-office function. Keeping debit cardholders safe from fraud protects not just the card but the core relationship.
