The Retailer Spring Edition 2022
SPR I NG 202 2
Transaction has been approved but with significant friction due to 3DS 1 which might lead to customer churn
Transaction has been declined due to friction caused by 3DS and lack of SCA strategy
Transaction has been approved potentially with less friction as issuing bank has applied for an exemption which has resulted in less SCA challenge
Data is either unknown of transaction has been declined due to a BAU reason such as genuine fraud, invalid card, card authentication failed etc
*An assumption has been made that transactions with ‘unknown’ authorisation result that have a decline reason code against them have actually not been approved by the issuing bank
• Be sure to take advantage of SCA’s exemptions. One way to avoid SCA complications, declines and order abandonment is to avoid SCA in those cases where it is not required. • Find the solutions and partners that can keep your fraud rate low. That’s vital to taking advantage of SCA exemptions, which in turn is vital to providing a top-flight customer experience. • Make sure your commerce protection partner can provide the tools to steer your transactions down the most economical and efficient checkout path, depending on each order’s charac teristics. Be sure your partner isn’t simply providing tools and solutions. Find a partner that can also offer guidance and strategy when it comes to managing the new era of SCA.
During its first year of SCA, France demonstrated itself to be among the best prepared for the new regulation. Its low reliance on the outdated 3DS version 1 helped it achieve an approval rate of more than 77%. The vast majority of its 3DS approved orders — 70.2% were processed through 3DS version 2.1. Another 4.2% were run through 3DS version 2.2 and only 2.5% were approved through 3DS version 1. The good news in all this for the UK is that its merchants and banks still have time to learn from the lessons of the rest of Europe before doing too much damage to retail’s conversion rate and revenue. Good early steps would be to: • Immediately move from 3DS version 1 to the most up-to-date version available. Version 2.2 for instance, supports all versions that came before it and provides some crucial advantages over outdated versions. • Talk to all the players in your payment ecosystem and be sure they are as vigilant about updating their 3DS capabilities as you are about updating yours. You need everyone to be on the same page to minimise declines and maximise revenue.
Ed Whitehead firstname.lastname@example.org
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