If you are an online retailer, you know all too well the importance of creating a checkout that is as easy as possible and in as few steps as possible. But creating an easy, frictionless checkout becomes complicated when you add in necessary security features to process payment transactions. It is very easy for an online shopper to abandon their cart, change their mind, or Google their purchase elsewhere. Now there is a process called 3D Secure Advanced that has accomplished secure checkout, without the friction of the original 3D Secure. Here is how:
Creating a frictionless checkout entails many parts of your site. Ideally, a customer merely has to click a button to add products to the cart. If they change their mind, they can easily remove a product from the cart prior to making the final purchase, just as they can in a bricks-and-mortar store. When the customer has finished shopping, they click on the ‘buy’ button, select from a menu of delivery services and featured options, such as gift wrapping, then provide the payment information. Herein lies the biggest challenge for many e-commerce sites to achieve truly frictionless checkout and avoid abandoned carts.
In the payments industry there is a certain amount of information needed from the shopper. There are security measures to ensure the person using the card to make the transaction is the actual cardholder, and this can lead to delays and obstacles, a.k.a. friction, in a virtual store.
So the challenge to merchants is creating an e-commerce checkout that has an easy payment acceptance process, but also has security features built in to not only protect customer data but to protect your business from card fraud. Enter 3D Secure Advanced.
The original 3D Secure is a robust fraud prevention initiative. It has, however, received some backlash for the friction it has caused at checkouts, increasing abandoned carts. Originally, 3DS asked consumers to enter a bank-supplied password for every enrolled transaction before it could be completed. Consumers were not well educated about the system and, therefore, unprepared for it when making a purchase at participating online businesses.
As a result, adoption of 3DS was limited. Since then, however, card brands and issuers, along with providers that enable merchants to process 3D Secure messages, have worked together to make major changes to this system.
Merchants and issuers now can choose which transactions require the consumer to enter a password, significantly lowering the friction to customers enrolled in the program. By combining 3D Secure (3DS) with Big Data and what issuers call risk-based authentication (RBA), merchants are able to have more confidence in a transaction and reduce the amount of orders they cancel post-authorization, creating frictionless checkout while not sacrificing security or increasing the risk of chargebacks.
Download the whitepaper "The Evolution of 3D Secure" to learn more, or contact us to discuss putting this to work for your organization.