Whiteboard Wednesday #12: How to prevent fraud in your online shop | Clearhaus Learning
It’s difficult to avoid online fraud - and that’s why it is important that you protect your online shop against fraudsters.
One way to do this is by using 3-D Secure. Kristian Benee from QuickPay talks about the benefits of 3-D Secure in this video.
For example, you are no longer liable for a fraudulent transaction, when you use 3-D Secure. Watch here!
Welcome to Whiteboard Wednesday. My name is Kristian, I’m from QuickPay, and today I’m going to talk to you about how to prevent fraud in your ecommerce shop. One way to prevent fraud is 3-D Secure. 3-D Secure is also known as Mastercard SecureCode or Verified by Visa. 3-D Secure is the solution where your customers, when they are buying something in your shop, they are filling in their payment information and they receive a text message on the phone with a small code. They fill in this code in the next window and then they can complete the purchase.
With 3-D Secure, you as a merchant, are sure that the customer is also the one owning the card, and there’s also a liability shift. With a liability shift, normally, without 3-D Secure, it is you, as a merchant, who has the responsibility if fraud happens. But after 3-D Secure it is now the issuing bank’s responsibility.
Today, 3-D Secure is not mandatory, but with PSD2 in the future, two-factor authentication will be required, and 3-D Secure is, at least at the moment, the best way to do this. So, we recommend that you, today, get started with it. The best way to get started is doing it conditional at the moment. So, using specific rules or automatic systems at QuickPay or Clearhaus you can set up the flow so only the required payments get 3-D Secure. That could be all payments above a certain amount. If you get started with this today, the transition, when PSD2 will happen, will be a lot less.
So, I hope you can use this point on 3-D Secure to help you prevent fraud in your e-Commerce shop and make sure to watch the next videos.