Any merchant doing business in Europe has had to manage a barrage of compliance measure over the past few years. After investing time and effort into ensuring compliance with General Data Protection Regulation, businesses must now immediately focus on preparing for the revised Payment Services Directive (PSD2).
PSD2 is a European directive that aims to standardize, integrate, and improve payment efficiency in the EU to create a more competitive payments landscape. The part of PSD2 that impacts merchants most directly is the new requirement for merchants to authenticate online transactions within the European Economic Area using Strong Customer Authentication (SCA). Under SCA, merchants need to introduce additional friction into the purchasing process – which will lead to increased drop-off rates, reduce overall conversion rates, and provide consumers with a poor customer experience. Ultimately, all of these changes will hurt revenue, so businesses need to mitigate the effects of PSD2 and protect as much of their revenue as possible, all while maintaining compliance with PSD2.
PSD2 needs to be top-of-mind for any merchants who currently have a presence in Europe (or if they’re planning to expand into Europe anytime soon). Simply put, there’s a lot at stake. PSD2 is a huge challenge that businesses need to understand and prepare for in order to meet compliance by the September 2019 deadline.
Introducing: Forter’s PSD2 Solution for Merchants
With Forter’s PSD2 Solution for Merchants, we’ve built a solution that simplifies PSD2-compliance for businesses while simultaneously providing them with the ability to leverage accurate fraud prevention and deliver a great customer experience to all of their users.
Forter is able to assess the trustworthiness and risk associated with each transaction in real-time and dynamically route customers to the path of least friction possible – taking advantage of any exclusions or exemptions when relevant. Our solution automatically identifies when a transaction falls under the scope of PSD2 and provides Strong Customer Authentication via 3DS2. Additionally, Forter’s fraud prevention platform can identify and block suspicious actors or transactions before authentication (and authorization) is even necessary.
“Having the ability to assess and route each transaction in real-time, no matter the processor or gateway used, allows merchants to be fully PSD2 compliant while delivering the best possible user experience – increasing customer satisfaction, loyalty, and ultimately, revenue,” says Michael Reitblat, CEO and Co-Founder of Forter.
PSD2 Solution for Merchants is also built as a solution with an agnostic integration and streamlined flow that works for all customers, all acquirers, and all payment service providers. Instead of needing to manage separate integrations or workflows with different payment service providers, Forter provides a single solution that reduces complexity for merchants and meets PSD2’s requirements.
Lastly, Forter’s holistic fraud prevention platform ensures that e-commerce merchants and marketplaces are constantly protected from increasing volumes of fraud attacks, new vectors that fraudsters discover, or new types of fraud that are constantly emerging – like account takeover, loyalty fraud, or buy online pickup instore (BOPIS) fraud. Forter’s end-to-end identity-based fraud solution ensures that businesses are protected at every stage of the customer lifecycle and prepared for any challenges they might face.
If you’d like to learn more, please contact us at [email protected].