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Adopting EMV 3D Secure protocol benefits entire e-commerce ecosystem
A collaborative effort between merchants , banks and card networks is required if the greater e-commerce landscape is to benefit from faster approval rates , low-risk trading environments and a better user experience offered by the new EMV 3-D Secure protocol , says authentication specialist , Entersekt .
The original release of 3-D Secure by the credit card networks took place in 1999 with the intention of combating online card fraud . The protocol was referred to as 3-D Secure 1 and mandated an additional security layer prior to the authorisation of an online transaction . However , it was not uniformly well received .
Konrad Karczmarczyk , Business Development Manager , Entersekt , said : “ Merchants have been resistant to adopting EMV 3-D Secure ( sometimes referred to as 3-D Secure 2 ) due to the friction that the first version of the protocol added to their e-commerce experience . While the first version was rolled out with the best of intentions , outdated authentication mechanisms and prompts led to user frustration and high cart abandonment rates as well as false declines . As e-commerce booms in South Africa , it has become more important than ever to depend on improved security – but in a way that doesn ’ t diminish the user experience .”
Karczmarczyk explained that with the new EMV 3-D Secure version , the card issuing bank completes the consumer verification steps in a matter of seconds and informs the merchant whether the payment can be authorised or not .
The exchange of data between merchants using EMV 3-D Secure and a card issuing bank to authenticate a cardholder , together with Strong Customer Authentication ( SCA ), is designed to significantly reduce the risk of fraud and improve check-out experiences .
“ It ’ s really important for everyone to understand that the sharing of information and data by the merchant serves to drive down false declines , and with the banks better able to control the user experience , they now have more tools to reduce cart abandonment . By sharing more data you will ensure faster processing and more accurate assessments and thereby enable a better customer experience and an increase in sales . It ’ s in everyone ’ s interest to share the data and reap the rewards ,” Karczmarczyk said .
While EMV 3-D Secure is now mandatory for European merchants selling to EU citizens , the path to adoption in South Africa has not been a wholly seamless affair .
“ There seems to be a fair amount of leniency in terms of deadlines from card networks on the deployment of the EMV 3-D Secure protocol .
“ September 2020 was the scheduled date for South Africa implementation , but this has been pushed out to the latter part of 2021 , which may see card networks enforce penalties for not implementing the protocol beyond the new deadline ,” he warned . p
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