3DSecureNet, an online fraud detection system developed by Visa and MasterCard, seems to be a disaster for merchants and customers alike.
A recent article in a French startup blog took a look at 3DSecureNet and how it may help a little bit with fraudulent online transactions, but, for some merchants, the negatives may outweigh the positives.
3DSecureNet works as a “two-factor authentication” for online transactions -- the service sends an SMS text message to an accompanying device for added security. However, customers have complained nonstop about the service, which has started to make merchants unhappy too.
3DSecureNet adds another step in the payment process, which means that merchants may see a lower conversion rate for their sales. Some merchants get so weary of losing sales that they get rid of 3DSecureNet all together, accepting the potential fraud and chargebacks in exchange for the higher sales.
Then, there’s the technical problem too. The 3DSecureNet system is supposed to ping a card owner’s corresponding banks, but due to the infrastructure used by French banks, many of them aren’t even getting the “call.” So, customers are left with an error message without any form of an explanation, which means the merchant gets bombarded with customer complaints.
By adding time to the checkout process and leaving some customers in the dark about their transaction, merchants are getting blamed for problems that are really the fault of the 3DSecureNet system.