Keynote - PSD2 SCA Update | Merchant Risk Council

As the revised version of the Payments Service Directive (PSD2) continues to impact eCommerce in Europe and beyond, it’s important to carefully examine how merchants and other payments professionals are implementing and adapting to the directive.

This informative presentation explores questions from the European Commission to the Payment Systems Market Expert Group (PSMEG), along with the group’s responses on the various impacts and implementation of PSD2. This document provides useful insights into the status of implementation, including what could be improved going forward.

Also included is a convenient collection of related acronyms for reference.

For large eCommerce merchants, even the smallest percentage of conversion gain is crucial, as it corresponds to thousands of euros or dollars, and sometimes more. As strong customer authentication becomes mandatory for all transactions under PSD2, this step adds friction to the customer journey, and therefore increases the risk of a transaction failing.

Moreover, PSD2 is introducing important changes in the fight against online payment fraud: the decision to trigger strong authentication (which was previously made by merchants) is now in the hands of the customers' issuing banks.

This presentation focuses on effective methods for achieving the balance of friction and authentication, while also examining Merchant initiated Transactions (MIT) such as Buy Now Pay Later.

As more merchants continue to adapt to PSD2, it’s time to examine how to incorporate CX into the thinking around fraud prevention.

This presentation explores that balance, by taking a deep dive into the dark web to surface fraudsters' responses to the new regulation, uncovering incentives to maintain low fraud rates under PSD2, examining why relying on 3DS alone is an insufficient fraud-protection tactic, and providing a quantitative analysis of the TRA.

Obtain firsthand insights from EMVCo on how EMV 3DS can help fight CNP fraud and improve customer experience simultaneously.

Appetite for payments via smart speakers, gaming and other IoT devices demands a streamlined authentication process, and this presentation highlights effective methods for achieving that goal.

Learning Objectives:

• Learn about the challenges posed by regulation in EMEA
• Getting best practices and ideas for eCommerce and payment space
• Reduce your onboarding fraud whilst minimizing friction

The MRC routinely receives inquiries requesting insight on how a fraud prevention unit can be established at a company from the ground up. In this whitepaper, the MRC, in conjunction with a working group of the MRC Fraud Community, delves into current trends, the regulatory landscape, and how these factors can affect both the role and structure of a fraud prevention group. Accountability and staffing are detailed next, followed by a brief look at training resources. Comprehensive information on common key performance indicators is also included, covering KPIs for chargebacks, risk operations, and fraud analysts. The paper closes with key benchmarking results from the MRC Global Fraud Survey and an appendix on KPI calculations.

In Nethone's Frictionless white paper, you will learn:

• How to reduce checkout friction to maximise your revenue?
• How to manage UX friction associated with PSD2/SCA?
• How to prepare for Transaction Risk Analysis (TRA)
• How to keep your customers happy
• How to achieve all this while effectively combating payment fraud