Czechs spent a record on the Internet last year. According to the Association for Electronic Commerce, domestic e-shops earned 196 billion crowns. This is 41 billion more than the previous year. In addition, the expenses of Czechs are also increasing for purchases in foreign e-shops. At the same time, more and more transactions are carried out from mobile phones. However, risks can also be associated with convenient shopping. Martin Prunner, currently the country manager of the local representative of PayU, which is one of the most important players in online payments on the domestic market and worldwide, explains how to best defend against them and what are the other trends in online payments.
What payment growth did you see in your systems last year, and how did you handle it?
We also had a record year. The effect of the coronavirus and the fact that another part of the economy quickly moved to the online world was greatly reflected, which had an impact on the significant reduction of cash on delivery and the growth of the number of online payments. At the same time, it was a very strong end of the year. Some days in November, for example, we recorded double turnover compared to last year.
Have you registered an overload of systems with such a large growth?
Payments and all systems worked reliably. We expect increases and are ready for them. There were no unexpected complications. At the same time, we pay close attention to safety. This is important for the entire sector and its level is currently increasing.
How exactly?
A new standard, the so-called 3DS 2.0, contributes to this. It is a less well-known topic among customers. It follows the EU directive that was introduced in September 2019 and is known as PSD 2. In short, these new steps increase security, PayU is fully compatible with them, and at the moment online payments processed use the 3DS 2.0 solution
Can these shortcuts be made more accessible to the average user?
They relate to customer verification. By being more perfect, it contributes to the fight against fraud. Practically speaking, the 3DS 2 introduces strong customer authentication and requires the use of at least two of the following three elements: something the customer knows (a PIN or password), something the customer has (a phone) and something the customer is (a fingerprint finger, face or voice recognition).
Does 3DS 2.0 apply to all transactions?
Some transactions will be excluded from the log. This is especially the case with a value of less than EUR 30, with no more than five transactions allowed in a row. If the total amount on one card is more than €100 in 24 hours, strong verification will be required. However, it is possible to require strong verification for any transaction, even for lower values, if, for example, the issuing bank decides to do so.
What benefits does 3DS 2.0 bring to marketers?
For example, it helps them meet the new requirements for all electronic payments. If a merchant has a large number of customers in Europe, it is necessary for the 3DS 2 to work. 3DS 2.0 has strong potential to combat fraud while providing a great customer experience. At the same time, 3DS 2.0 helps transfer responsibility for the transaction from the merchant to the issuing bank, the issuing bank assumes the risk for him after full 3DS 2 authorization.
Is everyone already using this standard or not yet? As a customer, how do I know that a payment is secured by 3DS 2?
I can only speak for PayU at this time. All payment transactions are now processed by PayU in the new 3DS 2.0 standard. It is difficult for the customer to clearly recognize in which mode the transaction will take place, or has taken place, because the issuing bank decides when authorizing the transaction whether a full 3DS 2.0 authorization is needed or whether it authorizes in a special mode without 3DS 2.0. However, the bank does not absolve itself of its responsibility.
