Shopping Safely
The more people buy online, the more important it is for retailers to protect themselves. Here are a few tools you can use to help.
With consumers having more online buying options than ever before — from connected devices to mobile-order apps to purchases made through voice-activated devices — eCommerce security is a valid concern for merchants and financial organizations.
Breaches can cost companies big money, according to the Cisco 2018 Annual Cybersecurity Report, which surveyed chief information security officers and security operations managers from 26 countries: In 2018, more than half of all cyberattacks “resulted in financial damages of more than US$500,000 (per breach), including, but not limited to, lost revenue, customers, opportunities, and out-of-pocket costs.” And that’s not including the threat of data breaches. Business Insider reported last year that in each of the preceding five years, an average of 1,704 security incidents had taken place, impacting nearly 2 billion records.
Here’s a look at some of the new technology tools that can help retailers protect their eCommerce sites.
A better eCommerce experience
One of the more significant trends in online shopping is the ability to make a purchase without pulling out a credit card which is known as a “card-on-file transaction.” Customers can buy items with a press of a button by saving card details with a retailer or by using a mobile wallet.
As card-not-present (CNP) use grows, though, there are some challenges merchants must deal with, including fraud. According to Juniper Research, retailers could lose an estimated $71 billion worldwide from fraudulent CNP transactions between 2017 and 2022. To help combat that problem, a financial industry payments organization known as EVMCo released a standardized framework called Secure Remote Commerce (SRC), a set of specifications related to online transactions, to make online checkout experiences easy, smart, and secure — whether you’re shopping on a computer, smartphone, tablet, or other connected devices.
Retailers could lose an estimated $71 billion worldwide from fraudulent card-not-present transactions between 2017 and 2022.
- Juniper Research
This specification will allow payment networks, such as Visa, to create better eCommerce systems for retailers. Visa aims to simplify and secure digital payments with the Visa Digital Commerce Program (Visa DCP). Visa DCP comprises solutions that address core digital payment types, including unique transactions, stored card, and recurring payments. Visa SRC transactions can benefit from the security of the Visa Token Service, and together these services form the foundation of Visa’s new digital payment experience.
These developments benefit merchants worldwide, who can now take advantage of global payment processors. For example, payments processor Adyen, gives their merchants the ability to choose from a wide range of payment methods based on global customer preferences. Adyen, which recently took over from PayPal as eBay’s primary payments processor, provides tools for merchants to easily accept any payment method. The availability of these options also helps reduce shopping cart abandonment rates by making the checkout process as easy as possible.
“We want to help merchants take advantage of the latest innovations in the payments ecosystem while consuming as many sources of data on shoppers to ensure that good transactions always go through quickly and seamlessly,” says Robin Gandhi, SVP of acquiring and partnerships at Adyen.
Visa DCP offers a great option in delivering seamless customer checkout flows while adhering to the required protections such as 3D Secure authentication, which, Gandhi says, has become a top priority for many of their merchants, adding that “we’re leveraging our full-service capabilities to be prepared for evolving regulatory demands without sacrificing customer experiences.”
Visa’s Digital Commerce Program drives 3 major efforts:
Supports consumer identification and verification methods toward a seamless, more-secure checkout experience
Increases security by replacing account numbers with encrypted tokens and domain controls
Supports higher authorization rates and fraud reduced on credential on file transactions, such as recurring transactions
Tokens instead of numbers
In fact, tokens, or tokenization, are foundational to digital commerce. Merchants storing sensitive customer information, like credit card or account details, on their eCommerce site are at risk. Tokenization replaces customer-sensitive data with an algorithmically generated number known as a “token.”
Tokenization is what allows businesses to keep your “card on file,” without exposing your payment information. It enables subscription-service renewals, faster checkouts, and speedier in-app payment experiences.
Since 2014, Visa has added more than 120 token requestors across 107 countries.
“Our priority is the security of our customers’ sensitive digital information,” says Ansar Ansari, Visa’s senior vice president of digital products. “Our partners will help scale tokenization to their thousands of merchant clients and millions of customers around the world, helping get us closer to our collective goals of reducing fraud, securing cardholder data, and making digital commerce safer and more efficient.”
Adyen has a token service that allows merchants to securely store recurring payment details for shoppers. The company supports many cards and non-card based local payment methods, including Visa credit cards, ACH, and SEPA direct debit. It’s because of tokenization that Adyen is able to offer frictionless experiences across the channels that customers demand.
“We offer ways to accept payments across various platforms such as online, in-app, or in-store,” says Gandhi. “By embracing some of these new innovations, merchants can truly provide engaging and seamless experiences for their customers without sacrificing security.”
More protection with biometrics
One challenge with online shopping is passwords. People are notoriously bad at coming up with hard-to-crack logins. In fact, “123456” was the most common password in 2019, according to the
UK's National Cyber Security Centre.
Fortunately, technology can save people from themselves. There’s now multifactor authentication which requires the user to enter an automated code via text in addition to their passcode, as well as biometrics, which identifies customers based on unique physical attributes such as facial recognition on their phone.
These tools provide for a much safer retail experience, says Ansari, who believes that within five years passwords will be a thing of the past.
As technology advances, retailers will be able to offer even more eCommerce experience without having to lose sleep over cybersecurity.
“Today, digital commerce is an inconsistent and fragmented experience for consumers, which results in poor conversion for merchants,” says Ansari. “The EMV Secure Remote Commerce Specification will become a foundation for the evolution of digital payments that will ensure ease of payment for card-not-present and IoT payments well into the future.”
Find out more about Visa's easy, smart, and secure online checkout experience.
The EMV® SRC payment icon is a trademark owned by and used with permission of EMVCo, LLC.
Sponsor content is produced in collaboration with advertisers by Insider Studios, the branded content team at Insider Inc. Business Insider's editorial staff is not involved in the creation of this content.
Copyright © 2020 Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. | Disclaimer | Commerce Policy | Made in NYC
This post is sponsored by Visa in proud partnership with Adyen.
The EMV® SRC payment icon is a trademark owned by and used with permission of EMVCo, LLC.
Sponsor content is produced in collaboration with advertisers by Insider Studios, the branded content team at Insider Inc. Business Insider's editorial staff is not involved in the creation of this content.
Copyright © 2020 Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. | Disclaimer | Commerce Policy | Made in NYC
Sponsor Content By
This post is sponsored by
in proud partnership with