Online merchants are constantly trying to protect their businesses, especially against fraud. The average merchant researches multiple fraud protection tools, settling on one that was recommended and assumes they are well protected. But what about protecting against false declines?
According to an article recently published by Card Not Present (CNP), "62 percent of online merchants have seen false decline rates increase over the past two years and points to automatically declining suspicious transactions as the potential reason behind high false declines rates." That is more than HALF of all merchants. Additionally, losses due to false declines are reported to reach $443 billion by 2021 which is seventy times more than the decline from fraud alone.
So, how can you prevent false declines?
There's no doubt, fraud prevention tools are necessary. However, there is one tool created by the credit card networks that will protect you from fraud without ANY false declines....EMV 3DS. When a transaction is authenticated via 3DS, the liability for fraud is shifted off the merchant/business owner and onto the issuing bank. Therefore, you can setup your fraud tools to be less stringent on authenticated transactions & significantly reduce the number of false declines that occur.
3DS should be your first line of defense, in addition to a fraud prevention software. The authentication process is frictionless and not only protects against loss of a customer but the loss of the Customer Lifetime Value.
Reach out to us at email@example.com and let us improve your customer's experience while saving you $$$ at the same time!