3D Secure is now mandatory for all e-commerce sites

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The amount of online shoppers in South African are increasing by 30% each year. Online shopping can be fun yet dangerous, and safety precautions are always advised. The biggest fear of online shopping is usually the payment process in which fraudsters could obtain your bank card details if the payment process is not safe.

Since the end of February, 3D Secure has been amongst the E-Commerce industry. When making a payment, 3D Secure connects with your bank in which a process of authentication occurs: In order to use your credit card for payments, you have to enter a One TIme Password (OTP) that will be sent to your mobile phone.

The name itself, 3D Secure, implies that its goal is to allow all online shoppers to have go through a secure online payment. However, it has not been widely accepted as a positive scheme. Major online companies such as Groupon, Takealot, and uAfrica has taken collective action in opposing 3D secure. There are pros and cons to 3D Secure.

PROS

Prevents Fraud

Walter Volker, chief executive of the Payments Association of South Africa (Pasa), says that it will help protect cardholders against unauthorised use of their cards when shopping online.” By having to use an OTP, it will be impossible for someone other than yourself to access your credit card details, unless you give it away.

Better protection

The CEO of FNB Business Banking claimed that 3D Secure will “further enhance capabilities aimed at protecting cardholders’ data”. For people who want better protection when shopping online, 3D Secure seems to be the only option.

CONS

Loss of customers

3D Secure would not accept all credit cards. Therefore, former online shoppers will not be able to use 3D Secure which would make them more reluctant to shop online at all. Seeing as 3D Secure is compulsory for all online stores. So, if a customer decides that they won’t shop online without 3D secure but they don’t have an accepted credit card, they won’t shop online at all.

Disadvantage for local companies

For people who do have accepted credit cards, they may be more inclined than ever before to shop online as it is safe. Seeing as many international companies also has this secure online payment method, local companies that are not online but around the corner from your house may begin to lose out. This means damage for the economy in South Africa.

Sources

http://mg.co.za/article/2014-03-14-e-commerce-security-feature-3d-secure-now-mandatory%20and%20http://memeburn.com/2013/08/exclusive-major-storm-set-to-erupt-between-sa-ecommerce-players-banks/

http://www.nedbank.co.za/website/content/promotions/index_detail.asp?promoID=720

http://memeburn.com/2013/08/exclusive-major-storm-set-to-erupt-between-sa-ecommerce-players-banks/

Sureswipe

Sureswipe

SureSwipe is a provider of credit and debit card swipe machine services in South Africa. We offer your business unmatched personalised service and competitive rates.
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3D Secure is now mandatory for all e-commerce sites

June 12th, 2014
Facebooktwitteryoutubetumblrmail

3Dsecure.gif

The amount of online shoppers in South African are increasing by 30% each year. Online shopping can be fun yet dangerous, and safety precautions are always advised. The biggest fear of online shopping is usually the payment process in which fraudsters could obtain your bank card details if the payment process is not safe.

Since the end of February, 3D Secure has been amongst the E-Commerce industry. When making a payment, 3D Secure connects with your bank in which a process of authentication occurs: In order to use your credit card for payments, you have to enter a One TIme Password (OTP) that will be sent to your mobile phone.

The name itself, 3D Secure, implies that its goal is to allow all online shoppers to have go through a secure online payment. However, it has not been widely accepted as a positive scheme. Major online companies such as Groupon, Takealot, and uAfrica has taken collective action in opposing 3D secure. There are pros and cons to 3D Secure.

PROS

Prevents Fraud

Walter Volker, chief executive of the Payments Association of South Africa (Pasa), says that it will help protect cardholders against unauthorised use of their cards when shopping online.” By having to use an OTP, it will be impossible for someone other than yourself to access your credit card details, unless you give it away.

Better protection

The CEO of FNB Business Banking claimed that 3D Secure will “further enhance capabilities aimed at protecting cardholders’ data”. For people who want better protection when shopping online, 3D Secure seems to be the only option.

CONS

Loss of customers

3D Secure would not accept all credit cards. Therefore, former online shoppers will not be able to use 3D Secure which would make them more reluctant to shop online at all. Seeing as 3D Secure is compulsory for all online stores. So, if a customer decides that they won’t shop online without 3D secure but they don’t have an accepted credit card, they won’t shop online at all.

Disadvantage for local companies

For people who do have accepted credit cards, they may be more inclined than ever before to shop online as it is safe. Seeing as many international companies also has this secure online payment method, local companies that are not online but around the corner from your house may begin to lose out. This means damage for the economy in South Africa.

Sources

http://mg.co.za/article/2014-03-14-e-commerce-security-feature-3d-secure-now-mandatory%20and%20http://memeburn.com/2013/08/exclusive-major-storm-set-to-erupt-between-sa-ecommerce-players-banks/

http://www.nedbank.co.za/website/content/promotions/index_detail.asp?promoID=720

http://memeburn.com/2013/08/exclusive-major-storm-set-to-erupt-between-sa-ecommerce-players-banks/

Sureswipe

Sureswipe

SureSwipe is a provider of credit and debit card swipe machine services in South Africa. We offer your business unmatched personalised service and competitive rates.
Sureswipe
By
@
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