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:
Make a list of your payment providers, and then discuss their authentication offering.
Check with your merchant bank to see if additional steps need to be taken.
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.
Security is our top priority at Trust Payments and we strive to ensure that all data is kept secure at all times. We keep all customer data safe with AES256 encryption, SSL Certificates, and a minimum of TLS1.2 between your website and our datacentres.
Our systems are scanned quarterly using the Qualys PCI Platform, an independent Qualified Security Assessor (QSA) and approved vendors – Omnicybersecurity (UK) & Forgenix (US) – to ensure compliance with the security requirements of the card schemes.
We follow a number of rigorous security procedures on a daily basis including, but not limited to, continuous monitoring of our perimeter, dark web monitoring, and internal checks to ensure that CIA triad is maintained at all times.
Trust Payments Ltd 2022
Trust Payments Ltd, No.1 Royal Exchange, London, EC3V 3DG. A company registered in England and Wales with Company Number 11976895.
Trust Payments (MALTA) Limited, Reg. No. C 56013, Ewropa Business Centre, Triq Dun Karm, Birkirkara, BKR 9034, Malta VAT number: MT23440004