PAAY Survey: Card-Not-Present Fraud Tough to Prevent; Frustrated Retailers Seek New Solutions

A joint PAAY and Industry Dive survey of 152 retail executives conducted in May 2023 reveals the stark reality of card-not-present fraud and the urgent need for better solutions.

Key Findings

• 75% of retail executives are "extremely" or "very" concerned about fraud's effect on their business
• CNP fraud costs nearly $10 billion per year
• Less than half of retailers think their current solutions are effective
• 7 out of 10 seek new solutions to combat fraud

EMV 3DS Adoption

The survey found that 48% of respondents currently use EMV 3DS for authentication. Among those not currently using it, 79% say they will likely invest in EMV 3DS technology.

What Retailers Want

The top benefits retailers are seeking from fraud prevention solutions include:

1. Increased customer satisfaction with seamless transactions
2. Fewer cart abandonments during checkout
3. Increased customer trust in their brand

"The survey results confirm what we've been hearing from merchants across the industry," said Lauren Rossi, Senior Director of Product at PAAY. "Retailers need solutions that not only prevent fraud but also enhance the checkout experience for legitimate customers."