It must be an odd feeling: always being one, or a few steps behind. Fighting fraud can be achieved by implementing additional safety measures; but the cost of these measures is high for the payment providers and they don´t always deliver consumers the perfect online experience. So, it might be better to adapt to this and implement security measures that keep costs down and truly help consumers make safer payments. The overload of payment verification tools and processes feels like an extra layer of inconvenience to consumers and they can hardly be seen as a help in executing a payment for eCommerce platforms such as Amazon, John Lewis, Ikea or Zalando.
Risk-based authentication opportunities
Banks and credit card companies do, of course, have good reasons for implementing these security authentication measures as they do help to reduce Internet fraud. But they should not close their eyes to alternative eCommerce security and authentication solutions that also meet the ever-changing needs of the consumer. There are better ways of providing consumers with a far more satisfying online and mobile shopping experience: Card issuing banks and card service providers should adopt tools that offer differentiating possibilities, such that a consumer with a high risk will still betaken through the strict security steps and those with a lower risk profile will be able to progress with a much ‘lighter’ security process. This approach maintains the stringent security at the high end of the risk scale, but at the same time, fast-tracks the lower risk consumers giving a far better experience for the majority.
Lower cost, higher revenue and enhanced consumer satisfaction
By differentiating the payment method and security steps to individual customers, based on a shoppers’ buying behaviour and transaction history, both issuers, acquires and online merchants can benefit from better results. The majority of customers (and their computers) can be trusted; they simply want to purchase an e-book, a flight or shoes. About 90-95 percent of all transactions fit within the low risk profile. There is really no point in demanding that all consumers fulfil all high security steps required in a complete authentication process. By implementing the right solution: payment service providers will save costs; online shops will benefit from higher revenues; and the majority of consumers will be far happier and more likely to complete their transaction.
Further information about RiskShield can also be found at: www.riskshield.com