Today's retailers have a wide range of payment methods at their disposal, both online and offline. While the security of these transactions is the focus of the European Union's attention, they nevertheless represent a certain risk. Scams are on the increase, both at the payment terminal and during online cashouts. Consumers are well aware of this: according to a Hipay study, 58% of them have already abandoned their shopping baskets during the payment phase.
To make internet purchases even more secure, the Payment Services Directive or PSD2 has been in force since May 2021. To find out what it's all about and understand how Smart TPE can protect you from certain frauds, read our article all the way through!
Strong authentication or 3D Secure V2
PSD2 is a directive designed to further protect merchants and consumers against cyber attacks, which have been on the increase in recent years. It particularly concerns online payments, which are subject to a fraud rate 20 times higher than in-store payments[1].
The main measure of PSD2 is to impose strong authentication at the time of online payment. Since 2021, customers must provide 2 of the following 3 elements:
- an element of knowledge such as a password or numerical code,
- an item of possession such as a cell phone or telephone line,
- an inherent element such as a fingerprint, facial recognition or the sound of a voice.
This security feature applies to purchases over €30, although some banks may adapt this limit. Payments considered low-risk may be exempted. These include
- subscriptions and regular spending on the same site,
- payments sent to a beneficiary pre-authorized by the consumer in his banking application,
- of transactions carried out by e-tailers fortunate enough to have a low fraud rate.
However, even in these special situations, you will always be asked for a 3D Secure code when you make your first payment on a site.
The strong authentication system protects merchants and reassures customers. However, customers may find the procedure tedious and abandon their purchase. This is why you need to pay close attention to your customers' payment experience, and make it as smooth as possible. Don't hesitate to inform them of the objectives of strong authentication, to get them on board.
To facilitate the payment phase, you can also offer a variety of payment methods, such as online payment wallets or Pay by Link.
Focus on the traditional VSE scam
Unfortunately, fraud is not limited to online payment services. The payment terminal or TPE has also become a target for crooks. Unwary merchants can find themselves stealing considerable sums of money in a very short space of time.
Here's an example reported by BFMTV: The main scam consists in replacing your TPE with another one. The latter has been programmed in advance so that the fraudsters can retrieve all payments made by credit card within the establishment.
To carry out the exchange, they can :
- take advantage of a moment of inattention on your part,
- break in at closing time,
- pretend to be a technician coming to repair the Eftpos terminal on behalf of the bank providing your payment solution.
To protect yourself from this type of fraud, there are two main solutions. Firstly, you need to remain vigilant and prevent anyone outside your business from accessing your POS system. If a technician contacts you for a repair you haven't requested yourself, be wary and contact your service provider.
Then opt for a Smart TPE : this is a system that lets you use your smartphone as a payment terminal. It will be difficult for a crook to swap it for another.
Today, it has become essential to secure your main payment methods, whether online or offline. Easytransac can help you set up a variety of secure payment methods. Choosing a quality service provider means limiting fraud and ensuring the smooth running of your business.
Who we are
With more than 60,000 customers, Easytransac capitalizes on a decade of expertise in various payment solutions (distance selling, ecommerce, convenience selling, cashless, mobile payment...).
Recently integrated into the HOPPS group and in strategic alliance with InEvents, Easytransac is at the forefront of innovation in the ecosystem of electronic payments and hybrid and cashless solutions that meet the requirements of e-tailers, event professionals and SMEs.
Our platform simplifies transactions and enriches the user experience, thanks to an intuitive interface and real-time tracking, while ensuring security at every payment.
