Security in European Online Retailing Higher Than Ever

Payment security in European online retailing is higher than ever, according to the E-retail Report 2010 by Deutsche Card Services. The non-payment risk for the predominant payment method (credit card) dropped to a record low of 0.1725%. In other words: less than two out of 1,000 transactions fail, according to the Deutsche Bank subsidiary’s figures.

If online retailers use the 3-D Secure technology, the chargeback ratio even declines further, to less than half of the above-mentioned figure. The two largest credit companies offer 3-D Secure under the brand names ‘Verified by Visa’ or ‘MasterCard SecureCode’.

“Online retailing has suffered much less from the financial and economic crisis than other sectors. Moreover, the number of fraud-related non-payments is considerably lower,” said Jens Mahlke, member of the management board of Deutsche Card
Services. This development clearly stems from co-operation with experienced payment services providers (PSPs) and a more widespread use of security measures.

“While such measures are quite common in traditional stationary retailing, they have not been used routinely in online business,” explained Mahlke. “It is quite reassuring that retailers’ stance on this issue has changed so that the increasing popularity of online retailing has not led to a proportionate pick-up in risks.”


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