3D Secure Abandonment Rates

[Burrito]

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?

[Burrito]

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...

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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.

That is interesting, we'll be integrating Paypal payments from Feb!

General feeling from both sides appears to be negative then, which was my largely expectation.

Thanks for the feedback Miniman.

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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.

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LooneyTunes said:

All that jazz said:

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.

I'd been doing that for ages, but then one day the "cancel" option wasn't shown. Not sure why it went, but was effectively forced to sign up.

Different card issuers set different limits on the number of times you can cancel before forcing you to sign up. I think it was about 5 times for HSBC.

[Burrito]

Just revisiting this topic as it's been a couple of years.

Is the general consensus the same, that 3DS has a negative impact on the buying experience and conversion rate?

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That's my feeling too. And of course it's accepted best practise to make the order process as frictionless as possible.

[Burrito]

We take PayPal (and we're going live with PayPal Express this summer) and have very few disputes. Guestimate around 0.02% in 2 years and these were successfully challenged bar one that I'm aware of, which was our mistake so the refund was pushed through ASAP.

Products probably not as easily fenced as jewellery though, and our fraud rates are generally very low.