Harness the power of your data to reduce fraud
and increase payment acceptance
Tailor-made fraud protection
Detect and stop fraud faster with clear
Adaptive solutions for emerging threats
Defend against ATO, promo abuse and seller
Optimize conversion with agnostic
Manage PSD2 and take control of
Online payment fraud
Understand chargebacks, fees &
Machine learning for fraud detection
Models, risk scores & thresholds
Link analysis & graph networks
Draw deeper insights from data
Account takeover fraud
Prevention strategies & reputational
Uncover & stop hidden costs
PSD2 & SCA
3D Secure, TRA & exemptions
Global payment regulation map 2022
Track PSD2 & more with a full report
Deep dives on fraud & payments topics
The latest fraud & payments updates
API & developer docs
APIs, glossary, guides, libraries and SDKs
Discover the story about Ravelin
Join our dynamic team
Read more about our happy customers
Join our partner programme
Harness the power of your data to reduce fraud and increase payment
Detect and stop fraud faster with clear insights
Defend against ATO, promo abuse and seller fraud
Optimize conversion with agnostic authentication
Manage PSD2 and take control of authentication
Understand chargebacks, fees & detection
Prevention strategies & reputational risk
Uncover & stop hidden abuse
Read more about our happy custmomers
Blog / PSD2
Analysis of millions of global business transactions reveals 22% of payments are lost when authenticated using 3D Secure. Improved user experience alone won’t cut it - online sellers and payment providers need to get smart about how to manage PSD2 requirements from September.
3D Secure (3DS) is an additional layer of security for online credit and debit card payments - the most well-known examples being Verified by Visa, Mastercard SecureCode and American Express SafeKey. At the final stage of checkout it asks the buyer for a password so the bank can authorise the payment.
Ravelin found that across millions of transactions between February and March:
For all its good intentions, 3DS is notorious for bad user experience and the clunky interface can even make customers feel less secure paying online. The frustration of an extra password carries dangerous risks of customer drop off and lost revenue for online sellers.
The new technology promises to be much better. 3DS 2 is launching on April 19th, ahead of the Second Payment Services Directive (PSD2) coming into force in September. PSD2 requires nearly all payments in Europe to have two-factor authentication and makes online payment providers legally responsible for keeping fraud rates low across all their online sellers. To manage fraud and maintain acceptance rates, qualifying payment providers can conduct real-time risk analysis on all payments - read more about this here.
This risk analysis will be crucial. 3DS 2 enables payment providers to send much more data to the customer’s bank, like device and order history. The bank can use this data to recognise the customer instead of asking for a password every time. This version will also give customers more flexible ways to authenticate, such as by thumbprint, app-based authentication or a one-time password.
However, 3DS 2 won’t be a silver bullet for online merchants and payment providers. Ravelin found that even forward-thinking banks who have already implemented one-time password and app-based verification still lost 19% of transactions through 3DS.
Ravelin's Head of Product, Mark Barlow says “It’s clear that improved 3DS 2 user experience alone is not enough to maximise acceptance. The huge differences between banks highlights that merchants will need to get smart about how they manage low-risk exemptions to the [two-factor] Strong Customer Authentication requirements.”
Ravelin's payment authentication solutions combine machine learning powered risk analysis with issuer intelligence and 3D Secure as a complete toolkit to comply with the upcoming revised Payment Services Directive (PSD2). This empowers merchants and payment providers to maximise payment acceptance while keeping fraud rates low. To find out more, read about our payment authentication solutions or get in touch with us today.
To learn more about PSD2 and SCA visit our insights page.
Jessica Allen Head of Content
2 min read
More from Jessica Allen
Share this article:
Blog / News
Buy now, pay later is exploding - what risks could this bring your business? We speak with Nelda Biltauere, Fraud Researcher at Ravelin, about BNPL challenges, costs & strategy.
Grace Proctor, Content Writer
From blocker to revenue enabler, businesses are seeing their fraud teams with new eyes. What has brought about this change? And how can you build on it?
Lola Omo-Ikerodah, Content Writer
Disputes and chargebacks are often viewed as a “necessary evil” in ecommerce. But the pandemic has made them a serious threat to business and revenue. How are you fighting back?
Subscribe to our newsletter to get the latest fraud & payments updates sent direct to your inbox.