Solutions overview
Harness the power of your data
Support and investigations
Support services for Ravelin
Online payment fraud
Account security
Policyabuse
Marketplace fraud
3DSecure
Resource Zone
Deep dives on fraud & payments topics
API & developer docs
APIs, glossary, guides, libraries and SDKs
Global Payment Regulation Map
Track PSD2 & more with a full report
Blog
The latest fraud & payments updates
Insights
In-depth guides to fraud, payments & security
About Ravelin
Discover the story about Ravelin
Careers
Join our dynamic team
Customers
Read more about our happy customers
Press
Get the latest Ravelin news
Support & investigations
Accept more payments securely
Protect your customer accounts
Policy abuse
Stop policy abuse to protect your bottom line
Ravelin for marketplace fraud
3D Secure
Ravelin 3DS & SDKs
Resource zone
Global Payment regulation map
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.
Share this article:
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
Blog / Fraud Analytics
Fraud prevention is a delicate balance between stopping fraud and maintaining good customer experiences. But what is the most effective way to measure this outcome?
Ravelin Technology, Writer
Blog / Machine Learning
Online payment fraud is one of the biggest threats facing grocery merchants. And it’s only gotten worse. How are fraudsters using the cost of living crisis to take advantage of your business?
There’s a new fraud threat on the rise – and it’s your customers. First-party fraud is infamously tricky to catch and a huge revenue risk. How can you detect and deter criminal behavior in your customer base?