If you are a small business only just starting out with online payments, it's important to be prepared in order to avoid any possible risk of fraudulent payments. In your research, you might have heard about the new 3D Secure legislation being introduced by major banks from September 2019. In this blog post, we explore how it will likely affect your business and identify the additional benefits.
Supported by most card issuers, 3D Secure 2 provides a layer of protection against any potential fraudulent and unauthorised payments. The new regulation from Europe, called Strong Customer Authentication, requires businesses to have the new 3D Secure authentication service set-up for all card payments. However, despite it being referred to as a new regulation, you might have come across this process before.
The original fraud prevention measure was launched by Visa back in 2001, meaning that you could have already been using this authentication software for years. Now, alongside Visa, it will be recognised by most major debit and credit card issuers, including MasterCard and American Express. The aim is to provide peace of mind to customers making online payments.
The new 3D Secure will now require cardholders to complete an additional verification step with their issuer, making your customer's purchases even safer. Unlike regular card payments, consumers will now be directed to an authentication page on the bank’s website. This will either ask them for a password (which they’ll set up with the bank) or they will need to enter an authentication code (which will be sent to their phone number). If the information is submitted successfully, the customer will be approved by the card provider and then directed back to the eCommerce website, with confirmation of the payment approved.
By using 3D Secure 2 payment processing, you won’t only be protecting your business. You will also be protecting the loyal customers who regularly use the checkout on the site.
Payments that have been successfully authorised by the new 3D Secure are covered by a liability shift, resulting in no more disputes between you and your customers. This is because the liability shifts from you to the card provider. Not only will you be protected against any unauthorised transaction chargebacks, but you will also save time and money that would have otherwise been used to solve disputes.
Liability shift also covers any potential payments that occur when the card or issuer isn’t enrolled onto 3D Secure 2, but the type of card can support the software. When the cardholder goes through the checkout, even if they aren't prompted into the new 3D Secure authentication, this means that liability still falls with the issuer.
It’s important to clearly indicate on your website that you are using the 3D Secure 2 legislation and software to improve security for your customers. Previously, with the initial introduction of 3D Secure, there was a noticeable increase in abandoned carts across eCommerce sites from the confusion of being taken to an external tab. The new 3D Secure will improve on this, preventing confusion and reducing abandoned cart metrics.
With the rise of smartphones, the convenience of being able to make payments with a few taps of your finger is in great demand. 3D Secure 2 has now been designed to make the user experience even smoother, with authentication experiences going through customer banking apps. Removing the need to enter a password or receive a text message, users will simply need to authenticate the payment by using their fingerprint on the banking app, making payments quicker and easier for the user.
A further improvement that customers will appreciate is the introduction of embedded flows directly within web and mobile checkout, without requiring a full-page redirect to the bank website. So, if a customer authenticates on your site, the new 3D Secure will now by default appear on the checkout page for your website. This results in less hassle by removing the need to open and close multiple tabs when purchasing a product.
Feeling confident in your need to start using 3D Secure 2 payment for your business? Preventing fraudulent payments in the future will save you plenty of time and money while helping to build essential trust in your service. In addition, your business can easily target much wider audiences by creating an improved user experience for all your customers on their smartphone. This allows everyone to enjoy the convenience of making quick payments at the tap of a button.
As one of the leading website development agencies for charities and nonprofits, at i3MEDIA, our experienced team will create a fully branded, appeal driven website, complete with secure and easy to use donation platform, supported by the new 3D Secure legislation.
With an easy-to-use Content Management System and responsive designs that work seamlessly between all your customer’s favourite devices, we are well placed to help your business or nonprofit make the most of the digital environment. Get in touch if you need a new or updated eCommerce website for your business and learn how we can help you today!