One of the most fundamental aspects of accepting online payment is ensuring everything is secure and protected against fraudulent behaviour.
Last week we wrote about what PCI means, its history and why it’s important for online businesses. While a lot of security features may appear to add friction to the checkout process, they are there for a reason.
For instance 3-D Secure is often accused of decreasing conversion, and there have been many arguments for and against its inclusion during checkout. However what’s important to remember is that 3-D Secure was originally developed and deployed by the card networks to reduce fraudulent transactions and to protect online businesses.
Another important point to highlight is that those studies generally don’t address how much revenue would have been lost due to e-commerce fraud with security features disabled.
Europe Card Fraud Statistics
According to a study released by the European Central Bank (ECB) last year, they discovered the total value of fraudulent using cards issued within SEPA and acquired worldwide amounted to €1.44 billion in 2013. The study also discovered another alarming statistic in which 66% of the value of fraud in 2013 came from card-not-present (CNP) transactions, i.e. payments via the internet, post or telephone – making it the largest category of fraud.
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So while case studies on conversion rate optimisation will often neglect to mention how much revenue was lost due to removing security features – it’s important to remember that with e-commerce spending gaining momentum and reaching new heights each year, the level of fraud will also increase along with it.
At PAYMILL, security is our top priority which is why we want to highlight other security measures that protect your online shop with a short quiz. Take the quiz to find out how well you know your online payments security and let us know how you got on in the comments section below.
Online Payments Security Quiz
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At PAYMILL, we enable 3-D Secure by default, and recommend all merchants use it alongside other advanced fraud prevention methods to reduce the levels of fraudulent transactions. Obviously, if your business requires, you can request to have this disabled, but we strongly recommend that you enable additional fraud prevention methods on your website.
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