How Strong Customer Authentication (SCA) threatens conversion rates?
Cost of payment fraud growing 50% faster than the amount transacted through online payments. Behaviour based solutions, which enable additional authorisation of payments, are the answer to this. With the introduction of PSD2 and strong customer authentication (SCA) soon more companies will have to take advantage of new technological solutions. Not only are these solutions often costly, but may also hurt conversion rates. That is why it is important to choose solutions present on the market with behavioural analytics at the heart of their product.
Online payment fraud is the phenomenon of criminals using stolen credit card numbers to purchase goods or services online. For card-not-present transactions the cost of criminal behaviour is always carried by merchants. Their businesses carry the burden of chargebacks: repayment of funds stolen by fraudsters to legitimate cardholders.
The issue of payment fraud is old, but what is new once you bring SCA into the picture? How can behavioural analytics be employed to help with the issue?
Rodrigo Camacho, CCO of Nethone share his views in the latest issue of our Payments & Cards Magazine. Read the full feature here.