Strong Payment Authentication isn’t a good thing says report

Card SecurityA new study recommends limiting use of strong authentication and instead using targeted authentication. The study warns that he blanket imposition of strong consumer authentication has a detrimental impact on sales.

The study has been endorsed by Ecommerce Europe, EDiMA, EPIF, Choice in eCommerce and CCIA, underlines that Targeted Authentication (which requires customer intervention in the authentication process relevant to the risks associated with each transaction) is a better alternative than Strong Customer Authentication.

Marlene ten Ham, Secretary-General of Ecommerce Europe states: “Targeted Authentication is the only viable method to secure a safe and seamless shopping experience for consumers. Targeted Authentication has proven to offer fraud prevention levels matching those of traditional strong techniques without hindering the customer experience, as the study shows.

He added “Today, 25% of shopping cart abandonments results from cumbersome authentication processes. This has a crucial negative impact on online merchants. However, there is evidence that in some verified cases Targeted Authentication could increase conversion rates significantly by up to 70%.”

To put all that into simple language that I can understand…. Don’t make your loyal repeat customers buying a five quid product go through the detested verified by Visa procedure, save it for the new customer about to spend a grand or so on desirable consumer electronics.