It’s hard to believe that credit cards have been around for 100 years. And now, more than ever, the economy heavily relies on credit, which has proven to be a flexible way of borrowing money for businesses and customers.
We know that beyond offering cash flexibility, credit card data also shows how people manage their cards, including when they’re paid and if they’re carrying over a balance.
And recent statistics show credit cardholders are making good progress, as the number of cards issued keeps rising, and risky balances and charge-offs are on the decline. According to UK Finance, in the UK only, in May 2022, there were 357.4 million credit card transactions – 26.9% more than the previous year. Out of these transactions, 60% were contactless payments, which is 34% more than in May 2021.
Keep your credit card payments secure
Despite this growth, credit card fraud is still a big problem for businesses around the world. And this pandemic has made it clear these businesses need safe ways to process payments without requiring physical contact.
We’ve shared our top tips for fighting fraud in a previous article. Today we’ll be focusing on helping you keep your credit card payments secure with two-step authentication.
In short, two-step authentication adds an extra layer of security to online accounts beyond the username and password. Depending on the bank, they can use security questions, a fingerprint or a passcode.
It uses a protocol called 3DS 2.0 to reduce fraud in eCommerce, which is a regulatory requirement for all businesses in the UK, as of March 2022 (read more).
The big benefits of 3DS2
Implementing two-step authentication with 3DS2 will prevent credit card fraud in the following ways:
Better customer fraud prevention online
Two-factor authentication is becoming more popular among eCommerce providers to protect their customers’ credit card info.
By using your banking app or SMS service, you can ensure unexpected transactions require confirmation. The 3DS2 technology is used online by credit card merchants like Visa and Mastercard, providing you with greater protection against fraudulent transactions.
Reduced shopping cart abandonment
Most eCommerce merchants still deal with shopping cart abandonment. There’s an issuing bank behind every transaction, so two-step authentication with 3DS2 will make flagged transactions less likely to get declined. You’ll make the purchasing process frictionless for your customers, which will keep them loyal.
Ensure merchant protection
Authentication through 3DS2 is done by the bank, and it’s the bank’s responsibility to ensure the transaction is secure. Therefore, there won’t be question marks or chargebacks if there’s any fraud detected. As the retailer, you’ll get a refund right away.
Being compliant with regulations
Businesses that sell online are now required to abide by the European PSD2 directive. Using two-step authentication with a trusted payment provider will save you time from staying on top of the minutia of legislation and allow you to focus on growing your business.
Successfully implement 3DS2
UK legislation mandates that by the 14th of October 2022 at the latest, you must upgrade to 3DS 2 to continue taking payments online and by mobile.
TRU Connect, from Trust Payments, is your fastest route to online payment acceptance. It will make your business fully compliant with 3DS 2 through any device or channel. With the most up-to-date security for your eCommerce transactions, it enhances your customer experience on mobile devices and helps reduce disputes and chargebacks.
Get started today and join our 20,000+ customers globally in their credit card fraud fight.
