Payment fraud is still a major concern among online merchants. Cybercriminals target digital payments because it is more difficult for merchants to verify the identity of the cardholder in an online transaction.
Having a merchant account provider that offers tools to deal with fraud and chargebacks, such as 3D secure processing, is vital to keep your business running and avoid fraud.
An analytic study, published in 2016, estimated that the e-commerce industry suffered a revenue loss of $6.7 billion. This means that every dollar of fraud cost $2.40 for the merchant.
Recent statistics also show that the total annual value of losses for card-not-present fraud in the UK reached £470.2 million in 2019.
At iPayTotal, we specialise in high-risk businesses and provide companies with customised alternatives according to their business needs. However, we will always offer every merchant the most advanced tools to help you protect your business from those fraudulent actions and increase profitability, such as secure SSL-encrypted serves, 3D secure processing and more.
In this article you will learn more about 3D secure processing and its benefits for your business.
What is 3D secure processing?
Created by Visa, the 3D secure or 3DS technology is a globally accepted solution built to make e-commerce transactions more secure in real-time. It provides an extra layer of security to the operation, preventing unauthorised use of credit cards and minimising the risk of fraudulent activity.
The 3D secure solution has such a name because it involves three parties: the acquirer domain, the issuer domain and the interoperability domain.
How does a 3D secure processing payment work?
It takes four steps and a few seconds to assure your transactions are safe with 3D secure processing:
The cardholder enters the card information, such as the card number, expiring date, CVV code and his or her name.
The payment processor verifies whether the card is registered for 3D secure. If it is, the cardholder is redirected to the 3D secure page served by the issuing bank.
An additional security authentication step: the cardholder will be asked to enter a one-time PIN or a nominated password.
Payment confirmation: the acquiring bank authorises the operation and the customer is informed whether the transaction succeeded or failed.
Some customers may not understand the redirection to a new page while verifying the payment. Let them know your website uses 3D secure processing.
Add a link to a reputable site that explains the process also. This will make them feel safe and secure. It will also reduce the chances of your customers thinking that their personal information is being exposed.
The main benefits of using 3D secure processing
The main advantage of using 3D secure processing is the new level of protection from fraud. It protects both the client and the merchant. Some other benefits are:
- Increased customer confidence in purchasing goods and services on your website
- Better customer experience
- More successful checkouts
- A reduction of the merchant’s cost from fraudulent chargebacks
- Additional protection for your online business.
The 3DS is an effective security system, constantly evolving. It helps to smoothen the online shopping experience and takes online payment security to a new level. It is a great addition to other anti-fraud systems and security measures on your e-commerce platform.
Start using 3D secure processing payment
To start using 3D secure processing you will need a merchant account to process online payments. Make sure your credit card payment provider works with acquiring banks that can integrate with 3D secure processing through PCI-compliant payment gateways, such as iPayTotal.
At iPayTotal, you will be able to accept online payment on your website, with the 3D secure processing technology. Our priority is to help you eliminate fraud and chargeback risks. We understand the importance of this level of protection for your e-commerce merchant platform.
Contact us today at iPayTotal and find out how to protect your merchant account from fraud, using the latest in anti-fraud protection.