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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
- 70% of card not present fraud is carried by Merchants
- 27% of card not present fraud is carried by card issuers
- 3% of card not present fraud gets eaten by the cardholder themselves
- 3DS2 is designed to move liability off of merchants and onto issuers. Currently, 43% of merchants have adopted 3DS
- 14% of merchants are planning on using 3DS version 2
- Concerns about the problems that occurred with 3DSv1, lack of understanding, and investment in other fraud tools are holding back some merchants from 3DS2
- 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.
A recent Mercator Advisory Group report takes a look at what percent of card not present fraud is carried by merchants, issuers, and consumers.
