All major acquirers now support EMV 3D Secure and now so does Cardknox. Regrettably few issuers implement a risk-based authentication methodology that uses the extra data 3DS makes available to them. Instead these issuers ignore the data and request a cardholder step up authentication which drives merchant shopping cart abandonment rates.
In theory EMV 3D Secure was supposed to significantly reduce cart abandonment as compared to earlier implementations of 3D Secure but complications include a lack of consumer awareness of the authentication mechanism used combined with the issuers demand for that authentication.Issuers that fix this problem using a standard authentication mechanism across all cardholder facing channels would be well positioned to win top of wallet status:
“Cardknox announced its support for 3-D Secure 2.0 (3DS2) technology, a next-generation e-commerce payment security protocol developed by EMVco. 3DS2 authenticates cardholder identities in real-time during the checkout process, which reduces fraud and chargebacks without compromising on the checkout experience. This technology is now available through a Cardknox gateway e-commerce integration, as well as with PaymentSITE, Cardknox’s customizable online payment form.
Benefits of 3-D Secure 2.0 technology include:
• Robust, risk-based authentication that uses a greater number of data points than the original 3DS
• Reduced friction and accelerated checkout process
• Embedded authentication process without redirects that slow down checkout
• Increased sales due to fewer abandoned shopping carts
• Reduced fraud and chargebacks
Read the full article from HelpNetSecurity here
