Should I Enable 3D Secure

[a1anm]

I just wanted to check if other online merchants have 3D Secure turned on for their checkout?

I tend to lose at least one customer a day due to 3D secure. I guess they don't know their password. Sometimes they will contact us and we can help them out or they use PayPal instead but a lot of times we lose them.

I'm just wondering if it would be best to disable it and then be more vigilant about checking orders for fraud.

 

[virginoffice]

when we first set up a website years ago we had 3d secure turned off and lost a lot of money due to fraud. With 3d secure turned on you are protected against chargebacks from credit card companies

 

[OldWelshGuy]

For the last 2 months, I have not been asked to verify using 3d secure. it has popped up but auto completed. Not suer why, but my understanding is this is happening more and more.

 

[QuickFile]

I think the decision to enable 3D secure depends on what sort of business your engaged in. Are you likely to attract fraudsters? Online one-off transactions for services are towards the higher end of the risk spectrum, as opposed to business supplied locally where you have some ongoing relationship with your client.

I would argue that many consumers are familiar with the 3D secure process and it wouldn't act as a deterrent. I remember the days pre-3D secure and where we would get around £200 in fraud cases every month. Since the introduction of this scheme we get less that £200 per year.

 

[a1anm]

I've noticed that as well. Thought something weird was going on with my card. Starting to think that maybe it checks my IP address or cookie and can see that I've verified from the same location before so lets it through.

 

[Giggleberries]

Yes, definitely turn it on. We are using Sage pay and if Sagepay get a charge back request because of someone fraudulently using their bank card then not only do you loose your money, you also get an admin fee from Sagepay (not sure about other payment gateway providers) for dealing with the charge back.

3D secure is another way of checking your orders are safe to process.

 

[Nathanto]

I tend to lose at least one customer a day due to 3D secure. I guess they don't know their password. Sometimes they will contact us and we can help them out or they use PayPal instead but a lot of times we lose them.

Or perhaps the orders you "lose" are those from fraudsters who give up once they know they won't get past 3D Secure?

In my opinion it's a total no-brainer to activate 3D Secure. Our charge-backs from 3DS transactions are zero since implementing it a few years ago.

 

[astutiumRob]

I just wanted to check if other online merchants have 3D Secure turned on for their checkout?

Yes, since it was introduced 3 years ago.

I tend to lose at least one customer a day due to 3D secure. I guess they don't know their password. Sometimes they will contact us and we can help them out or they use PayPal instead but a lot of times we lose them.

"real" customers will contact you, fraudsters, scammers and try-it-onners wont

 

[JPincas]

My advice is also turn it. We sell food so don't attract much fraud, but we were getting the odd case and it was annoying us. Since I turned it on, we haven't had any and I don't feel we've lost sales. Sometimes customers do call when they can't remember their password.

I also activated Worldpay's fraud detection system for 6p a transaction at around the same time, because there are still quite a lot of cards/banks that don't work with the 3D secure system, but so far all of the transactions it has flagged have been false alarms, so I'm considering turning it off.

It's also worth noting that our system generates an email to me any time there is an 'error' at the chekout, including a customer that fails to get through 3D secure. I can then send them an automated email to ask if they'd like to do the transaction manually - so this acts as a bit of a net for catching any failed orders.

 

[Todd301]

I was having some issues with the implementation of 3D Secure in my shopping cart, so I disabled it (admittedly this was 2 years ago) and we haven't gone back to implement it as I'm not sure the issue is fully resolved and at the time, there was still a lot of negative press about 3D Secure hurting conversions, but I wholeheartedly agree that things have moved on for the better now as it is much more widely implemented and people are used to it. Personally I still find it a bit annoying as I can never quite remember my password and once you choose to reset it, it forces you to use something you haven't used before thereby recreating the problem in my opinion...

Anyway, having not had 3D secure running for the last few years, we have definitely had fraudulent orders, but in almost every case, the SagePay's inbuilt fraud screening (they use 3rd Man results) had picked these up. The one thing I would say, is that you have to be committed to checking each order (fraud processing checks can take up to an hour after the transaction is done to show in Sagepay) as sometimes we assumed something ordered for just 7.99 is unlikely to be fraud, but it has in fact turned out to be. We shipped the item and did get a charge back.

I'd say as long as you make a habit to check each order before you dispatch and you have a good fraud screen, you should be ok - but you are certainly liable if the order turns out to be fraud... so the only way to remove any doubt is to use 3D secure.

I'd also add that I think PayPal is pants when it comes to unconfirmed paypal orders i.e. those countries where PayPal doesn't have the option to link a Paypal account to an address. If you ship to an unconfirmed PayPal account, you're still liable. Yet they don't confirm accounts in a lot of markets - how rubbish is that?

 

[a1anm]

That's what I was thinking. Maybe it would be better to be more vigilant when checking the 3rd Man Fraud Results and turn it off. As it stands we still need to check thee results anyway as not all cards are enrolled so it's easy enough for the fraudsters to use these cards instead.

I know some of my failed transactions are fraudulent but I definitely lose sales from non fraudsters. In some cases their address and CV2 match, really low fraud score etc but they bail during the 3d secure. They will sometimes get in touch and we can resolve it or they use an alternative method like PayPal but sometimes I lose the sale which is frustrating.

 

[Todd301]

Sounds like it's worth testing. It's not difficult to turn 3D secure off in Sagepay. You can then just monitor your conversion rate and fraud liability. Hopefully your conversion rate will go up without the chargeback bill going up...

Unfortunately 3D secure has always been off for us, so I can't scientifcally tell you if it makes a difference to our conversion, but if you do the analysis, I would be really interested in the results...

Good luck anyway!!

T

That's what I was thinking. Maybe it would be better to be more vigilant when checking the 3rd Man Fraud Results and turn it off. As it stands we still need to check thee results anyway as not all cards are enrolled so it's easy enough for the fraudsters to use these cards instead.

I know some of my failed transactions are fraudulent but I definitely lose sales from non fraudsters. In some cases their address and CV2 match, really low fraud score etc but they bail during the 3d secure. They will sometimes get in touch and we can resolve it or they use an alternative method like PayPal but sometimes I lose the sale which is frustrating.

 

[ash123]

these guys have a good one www .playrepublic .co.uk

 

[Dominic Taylor]

We run 3D secure for transactions over a certain value - it's a bit of hassle but lowers costs and doesn't lose us anything as by the point of payment we already have the order stored.

From a personal perspective when buying online, 3DS is a pain but recently I've noticed it's not asked for a password in most cases leaving me confused as to the point of it!

 

[JPincas]

I seem to remember getting an email from somewhere earlier this year saying that 3D secure is already obligatory for some card types (can't remember which) and given the way things are going, I think it's likely that this choice will be out of our hands very soon. Better to get ready as early as possible I say.