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Revolutionising European eCommerce with 3DS 2.0

How to tell it’s time to upgrade your POS

During the Coronavirus pandemic, the European eCommerce market experienced a well-expected boost across the continent. It is no surprise that both online shopping as well as cashless electronic payments are booming due to their convenience, driving society’s digital transformation and Europe’s economic growth.

Ecommerce Europe estimates that in 2021, eCommerce in the European Union grew by 13% to €718bn with a growth rate of 13% and that in 2022, the growth rate will be 11% to €797bn.

However, this growth poses its own security challenges. And businesses are increasingly wondering how the financial industry protects merchants from fraud.

Banking on 3DS2 for Secure Checkout

In 2019, the Payment Services Directive (PSD2) was introduced as an EU legislation aimed at securing online payments and improving financial services innovation.

Merchants must comply with this legislation by implementing Strong Customer Authentication (SCA), which ensures that electronic payments are performed with multi-factor authentication, thereby increasing the security of electronic payments.

3DS 2.0 has been introduced across Europe in response to PSD2 and SCA to reduce fraud in eCommerce. Two-factor authentication typically requires the consumer to enter a short code sent by SMS by their bank along with two pieces of personal information stored with their bank.

In order to authenticate the 3DS, there are several steps consumers need to take, and PSD2 impacts all of them. Since many consumers are not familiar with the 3DS process, most businesses experience a high rate of 3DS-triggered customer cart abandonment simply because there are additional steps to complete.

3DS2: why your business needs it

As of 14 March 2022, all card payments in the UK require strong customer authentication (SCA), which requires 3DS2.

In order to use the Visa card framework, businesses will need to implement this by 15 October 2022 since Visa will cease supporting old authentication technology in favour of 3DS2.

Your business will benefit from 3DS2 in the following ways:

Comply with legal requirements

Strong customer authentication is now a requirement for all merchants in the EU. The most efficient method to meet the new industry standard is by using 3DS2.

Reduce fraud liability

By enabling 3D Secure 2 payments, your business is no longer for fraudulent transactions. It will primarily be the payment providers and issuing banks that will be responsible for chargebacks.

Reduce cart abandonment

By making the checkout process quicker, easier, and less prone to errors, customer drop-off rates will decrease.

How to successfully implement 3DS2

Here are the steps your business should take in order to implement 3DS2:

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Make a list of your payment providers, and then discuss their authentication offering.

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Check with your merchant bank to see if additional steps need to be taken.

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Consider partnering with a strong eCommerce partner to assist you with implementation.

What if there was a faster and more hassle-free route to implementing 3DS2?

From Trust Payments, TRU Connect is your fastest route to online payment acceptance, making your business totally compliant with 3DS 2 through any device or channel. We can help:

Enhance customer experience

Shoppers using their mobile phones can receive a one-time password on the same device to authenticate.

Reduce disputes & chargebacks

In the event of a fraudulent chargeback, the customer’s bank is liable if they have approved the transaction authenticated with 3DS 2.

Additionally, implementing 3DS2 through our solution will offer you ongoing support from experts who understand agile principles and test-driven standards. You will get 24/7 support from our team and access to all supporting documentation and a free testing environment so that you can test the solution before purchasing.

So, whether you are trading in Europe or UK, you can now get the most up-to-date security for your eCommerce transactions. Reach out to the Trust Payments team now.