Online sales are booming, but so is the risk of fraudulent transactions. As a merchant, safeguarding your business and customers’ information is paramount. Here’s why 3D Secure Transactions (3DS) is the superior security protocol compared to 2D Secure (2DS) for online card payments:
- Enhanced Fraud Prevention: 3DS Transactions adds an extra layer of authentication, typically requiring a one-time password (OTP) or fingerprint verification. This significantly reduces fraud compared to 2DS, which solely relies on basic card details. Studies by the European Central Bank show a fraud reduction of up to 70% with 3DS implementation.
- Reduced Chargebacks: Chargebacks occur when a customer disputes a transaction. 3DS verification helps minimize fraudulent transactions that lead to chargebacks, potentially saving your business thousands of dollars annually (as reported by Juniper Research)
- Shared Liability: Unlike 2DS where fraud liability falls solely on you, 3DS shares it with the card issuer. This means you’re less likely to be held responsible for fraudulent activity, providing greater peace of mind.
- Improved Customer Experience: 3DS verification methods like OTPs are quick and convenient. They not only enhance security but also streamline the transaction process, fostering customer satisfaction and loyalty
- Stronger Payment Ecosystem: By promoting secure transactions through 3DS Transactions, you contribute to a safer online payment environment for everyone
In Conclusion:
Implementing 3D Secure is a win-win situation. It protects your business from fraud and chargebacks while building customer trust. By prioritizing secure transactions, you can create a thriving online store with boosted revenue and loyal customers.
References:
European Central Bank. (2019). Payment and security in e-commerce. Retrieved from https://www.ecb.europa.
Juniper Research. (2019). The cost of chargebacks to merchants. Retrieved from https://www.
