11–20 of 45 posts
Earlier quoted context omitted.
Is reduced fraud even creating meaningful savings? The simple fact that these changes are driven by government regulation rather than internal efforts makes me think not. I think the main benefit to consumers is that they don't have to deal with identity theft as often.
Every chargeback from a fraudulent transaction costs ~$25 to businesses.
For e-commerce platforms, refunding fraudulent charges is cheaper than a two-digit drop in transactions.
Earlier quoted context omitted.
Reduced fraud does have benefits to merchants either way by (a) less income lost in chargeback fees, and (b) time saved not having to fight chargebacks.
There's more to that. Anti-fraud mechanisms that require additional action on user's side, lower the conversion rate. For example 3DSecure mechanism redirects customer to another site where user has to put a number received in a text message. My phone is in another room upstairs. I cancel the payment and tell myself I'll do it later. Of course I might do it, but I might forget about it or change my mind. Another exam…
Earlier quoted context omitted.
Is reduced fraud even creating meaningful savings? The simple fact that these changes are driven by government regulation rather than internal efforts makes me think not. I think the main benefit to consumers is that they don't have to deal with identity theft as often.
Every chargeback from a fraudulent transaction costs ~$25 to businesses.
Earlier quoted context omitted.
There's more to that. Anti-fraud mechanisms that require additional action on user's side, lower the conversion rate. For example 3DSecure mechanism redirects customer to another site where user has to put a number received in a text message. My phone is in another room upstairs. I cancel the payment and tell myself I'll do it later. Of course I might do it, but I might forget about it or change my mind. Another exam…
The implementations of 3DSecure I've seen were so terrible that I'm not surprised there is a drop in conversion rates. I would consider the user interface and the massive breakage as actively user-hostile. The redirects, terrible UI with blurry crappy bank logos, ugly dialog, and then I have to copy the code from my phone. And incidentally, SMS is a particularly bad method of authentication.
I guess I'll move to Stripe checkout instead of my custom form.
As security practices improves, reducing fraud, does the industry reduce its costs and pass the savings to consumers or is the trend to increase their own profits? I have an assumption as to what the answer is, however I'm wondering if anyone here in the industry may have a solid understanding?
I'd guess that market competition would drive up rewards as new entrants pass back more of the savings to consumers.
My main bank account is with Nordea, a big Nordic bank, one of Sweden's big four. They are currently quite paranoid about Internet purchases and outright do not permit any such transaction if it does not have that kind of two-factor authentication — if the merchant doesn't support it, you must log in with the app or Internet bank and temporarily turn this off for one hour. But with support for two-factor authentication bexoming obligatory in the EEA, I guess it will only be non-EEA merchants where this is a problem. :)
As security practices improves, reducing fraud, does the industry reduce its costs and pass the savings to consumers or is the trend to increase their own profits? I have an assumption as to what the answer is, however I'm wondering if anyone here in the industry may have a solid understanding?
As security practices improves, reducing fraud, does the industry reduce its costs and pass the savings to consumers or is the trend to increase their own profits? I have an assumption as to what the answer is, however I'm wondering if anyone here in the industry may have a solid understanding?
eBooks save money on printing and distribution but often aren't any less expensive than printed books.
eTickets save money on processing but ticket platforms charge a "convenience fee" on top of the ticket price.
When oil/fuel is at record lows, do airlines lower ticket prices in line? No.
Here's an example from finance: when banks save money via online banking and more advanced ATMs (allowing them to employ less people), do they lower their fees? No. https://www.latimes.com/business/lazarus/la-fi-lazarus-price...