3D Secure Abandonment Rates
Discussion
We're currently looking at the feasibility of introducing 3D secure for our website payments, but have previously opted to stay with our current system due to the fear of increased abandonment.
The advantages look good (although we don't have a high rate of chargeback) and we're moving to a new service with our current provider which would make it a good time to implement 3DS but I'm still fearful that adding another page to the checkout would lead to an increase in abandonment.
As 3D secure is now more established have the rates gone down? After some time trawling the net, I can only find one recent article which gives a figure of 3.8% overall improvement in approval rates, which is a combination of increased abandonment but increased positive authorisations (http://www.securetrading.com/blog/post/287).
Has anyone else implemented 3DS recently and what effect did it have on sales?
The advantages look good (although we don't have a high rate of chargeback) and we're moving to a new service with our current provider which would make it a good time to implement 3DS but I'm still fearful that adding another page to the checkout would lead to an increase in abandonment.
As 3D secure is now more established have the rates gone down? After some time trawling the net, I can only find one recent article which gives a figure of 3.8% overall improvement in approval rates, which is a combination of increased abandonment but increased positive authorisations (http://www.securetrading.com/blog/post/287).
Has anyone else implemented 3DS recently and what effect did it have on sales?
As a consumer I find it a real pain in the neck
Its another step in the way of the purchase you want to make, and if you have forgotten your password it seems pretty straightforward to reset it with only one piece of fairly easily obtainable data
What is the advantage from a business point of view?
Its another step in the way of the purchase you want to make, and if you have forgotten your password it seems pretty straightforward to reset it with only one piece of fairly easily obtainable data
What is the advantage from a business point of view?
AndyBrew said:
It reduced our sales by 20% so we took the hit of the £2 -£5k per month of fraudulent sales, our turnover was around £150k per month.
Your fraud rates are high! We have significantly higher turnover and much lower chargeback figures. What's the industry, if you don't mind me asking? How long ago did you change over as the 20% decrease is enormous, but if it was when 3DS was first released and the banks hadn't informed their customers who were, quite rightly wary, it could be a bit more understandable.
Engineer1 said:
As a buyer I always assume it is shifting the liability from the seller to the purchaser, same as chip and pin.
From the seller's POV it's shifting the liability from the seller to the card issuer. In theory, it means that if the card or data is stolen then the card cannot be fraudulently used because the fraudster won't have the 3DS password...From my point of view as a customer, I do find it a pain, and there have been several occasions when I've abandoned a purchase because I couldn't remember the relevant password and bought from someone else, and with several credit cards its kind of forcing me to use just one password for all of them, which isn't very smart.
Even now I have to refer to my password list when it comes up, but I am more prepared nowadays, and generally persevere with it. For anyone who doesn't buy online all that often, I can see it being a show-stopper. Just my tuppence worth
Even now I have to refer to my password list when it comes up, but I am more prepared nowadays, and generally persevere with it. For anyone who doesn't buy online all that often, I can see it being a show-stopper. Just my tuppence worth
miniman said:
russ_a said:
I sometimes pay more to pay using PayPal just because I can't be bothered to get my wallet.
Interesting, isn't it? I do the same. General feeling from both sides appears to be negative then, which was my largely expectation.
Thanks for the feedback Miniman.
russ_a said:
I sometimes pay more to pay using PayPal just because I can't be bothered to get my wallet.
Same here. Have come up against this 3D secure BS a few times now when I've not been expecting it and simply cancelled the transaction and went elsewhere. The crazy thing is that I spent more time finding the product elsewhere to avoid the 3DS than it would've taken me to go and get the password! 
But BS like this where people put obstacles in the way really pisses me off and although I understand the reasoning for implementing it it's not my problem that your site has a fraud issue.All that jazz said:
Snip... I understand the reasoning for implementing it it's not my problem that your site has a fraud issue.
Our chargeback rates are very low and loss prevention process, although quite manual, is not particularly resource heavy but very effective, so I would not say that we have a "fraud issue". More, we cannot take Maestro unless we use 3DS. That coupled with the increased uptake, meaning it's becoming the norm (with Amazon a notable exception) I think it would be foolish not to at least give it some consideration.Mind you, so far it's looking like a no!
DSLiverpool said:
Op see lasts weeks thread on exactly this
PayPal / google wallet / amazon payments - take the lot, why not?
I've not seen that, I'll have a search thanks. One of the reasons for reluctance to take the lot is that we're unable to fully integrate all of these with our current mail order software, meaning that swaps/refunds would become a somewhat convoluted task.PayPal / google wallet / amazon payments - take the lot, why not?
I use it all the time and am now suprised when I dont get asked for it. Surely this can only be a good thing for us all? I have a number of bank accounts and shop online extensively and dont have trouble with any of them.
I remember seeing an article where someone was using NFC to hack compatible credit cards (essentially reading the data off the card whilst stood in a lift) and were then able to buy a laptop off Amazon.
I remember seeing an article where someone was using NFC to hack compatible credit cards (essentially reading the data off the card whilst stood in a lift) and were then able to buy a laptop off Amazon.
Amazon is interesting in that it doesn't seem to process transactions live. On occasion I've had a "declined" email half an hour or more after the order is placed. IMHO the stored card details and quick checkout is key to making Amazon a good place to shop, if only they would do something about the shocking structure of the product (lack of) detail page.
You dont actually need to set a password. For those that have, commiserations.
Basically just fill in the details and click cancel at the next page where it asks you to set a password. This is purely optional. It will have already validated you at this point so will pass the sale.
Means you have to enter more fields, but they are easy ones if you have the card to hand.
Basically just fill in the details and click cancel at the next page where it asks you to set a password. This is purely optional. It will have already validated you at this point so will pass the sale.
Means you have to enter more fields, but they are easy ones if you have the card to hand.
I have found recently that when using sites with 3D secure they are no longer asking for my password! So I assume the bank is aware of the sites I regularly buy from and just automatically approves it without the need for me to use a password.
I fail to see though why more use isn't made of RSA secure ID where the buyer has a device which generates a number every 30 seconds or so which needs to match the expected one, because the reliance on passwords just means that lots of people use the same password for everything.
After all I have passwords for work (four for different systems), online banking, paypal, pistonheads, amazon, 4 different email accounts, several other discussion boards, web hosting etc etc. People just cannot remember them all so they are bound to write them down or use the same one!
I fail to see though why more use isn't made of RSA secure ID where the buyer has a device which generates a number every 30 seconds or so which needs to match the expected one, because the reliance on passwords just means that lots of people use the same password for everything.
After all I have passwords for work (four for different systems), online banking, paypal, pistonheads, amazon, 4 different email accounts, several other discussion boards, web hosting etc etc. People just cannot remember them all so they are bound to write them down or use the same one!
Chrisgr31 said:
I fail to see though why more use isn't made of RSA secure ID where the buyer has a device which generates a number every 30 seconds or so which needs to match the expected one, because the reliance on passwords just means that lots of people use the same password for everything.
Because two factor authentication of that nature is completely tedious and would have buyers leaving in droves. ringram said:
You dont actually need to set a password. For those that have, commiserations.
Basically just fill in the details and click cancel at the next page where it asks you to set a password. This is purely optional. It will have already validated you at this point so will pass the sale.
Means you have to enter more fields, but they are easy ones if you have the card to hand.
That's right, you can, but you've already typed them in once and now you have to type them in again. It's what pisses people off and the reason for the abandonments.Basically just fill in the details and click cancel at the next page where it asks you to set a password. This is purely optional. It will have already validated you at this point so will pass the sale.
Means you have to enter more fields, but they are easy ones if you have the card to hand.
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