Protecting Your eCommerce Store from Credit Card Fraud with Braintree

Over £393 million worth of eCommerce fraud, accounting for 59 percent of all card fraud, was estimated to take place on cards in 2018. If you have an online store, there’s nothing more troublesome and disruptive than fraud. It can dissolve customer trust, damage your reputation and cost you money.

Recent research predicts that merchants will lose a combined global total of $130 billion between 2019 to 2023 through fraudulent transactions. Add in the time spent by staff notifying customers, legal assistance and brand reputation management, there’s no wonder eCommerce fraud remains a top issue for online retailers. But it’s not all bad news! Implementing an effective fraud protection strategy can help you detect and prevent fraudulent activity. The right solution can even lead to increased conversions, loyalty, improved customer experience and heightened brand value.

Minimise your risk of eCommerce fraud

Fraudsters use stolen card details to target eCommerce businesses as there is no physical contact with the business or the cardholder. When payments are accepted and processed over the internet, the business asks for authorisation from the card issuer. However, this doesn’t confirm or authenticate the customer as the legitimate cardholder. Usually, authorisation only confirms that the card hasn’t been stolen, there is enough money in the account and the card details are valid. Although these basic fraud tools are important, more advanced options should be considered such as:

• Card Security Code (CS)
• MasterCard SecureCodeExternal
• Verified by VisaExternal

It’s also important to treat high-value items and oversea transactions with extra caution. Always verify the delivery dress or ask a third-party service to give you the overseas details.

It’s your responsibility to keep your website secure and store your customers’ card payment information securely. As this data is prone to hacking, it’s essential to comply with PCI and data security requirements. Using a renowned integration such as Braintree, you can rest assured your customers will have a safe and frictionless shopping experience.

Next generation authentication with Braintree

Online payment solution, Braintree, is as a Global Payments Partner to some of the world’s leading brands such as Uber, Dropbox, Skyscanner and Krispy Kreme. Supported by top platforms including Magento, this integration provides the commerce tools needed to scale businesses, accept different forms of payments and provide an efficient commerce process for users.

With 73 percent of shoppers saying they value security, Braintree ensures your customers’ shopping experience is a safe one. Using fraud prevention tools, Braintree will help you fight fraudulent transactions while keeping payment data secure so you can rest easy knowing your online store is secure. With access to decades of data, Braintree Fraud Protection can help you increase authorisation rates while reducing false positives and manual reviews. This learning-based solution can help your business accurately detect fraud in real time and control risks through continuous optimisation. Through their new 3D Secure 2 (3DS2) solution, it becomes simple to authenticate eligible card transactions and provide a seamless checkout experience for cardholders.

What is Braintree’s 3DS2?

3DS2 is the new industry standard for customer authentication and is a recognised solution for meeting Payment Services Directive (PSD2) regulations. As Braintree’s recommended solution, 3DS2 can be easily integrated to ensure a secure checkout for your customers, protect your business against fraudulent transactions and keep your transactions compliant with Strong Customer Authentication (SCA) requirements.

What are the benefits of using 3DS2?

With merchants in more than 45 countries, Braintree can accept, split and enable payments in more than 130 currencies across any device. Simple processes backed by innovative concepts create a whole host of benefits for your eCommerce store, with their solution creating a 70 percent decrease in cart abandonment and 85 percent reduction in transaction time.

• Shift chargeback liability: For eligible transactions and cards, 3DS2 can move liability for chargebacks due to fraud from the merchant to the card issuer.
• Life authorisation rates: Data from Braintree shows that issuers approve more transactions when using 3DS2 compared to using 3DS1.
• Drive conversion: Offering the most popular payment methods including PayPal, Apple Pay, Visa Checkout and masterpass, Braintree effectively reduces friction and barriers to conversion. The checkout process is designed to be seamless and secure providing your customers with a fast checkout.
• Keep your transactions SCA-complaint: Braintree can ensure your transactions meet SCA requirements with built in support from both 3D Secure 1 and 2 authentication.
• Increase efficiency: Braintree can help streamline your business operations by automating processes and freeing up resource. This integration can take the hassle and expense out of meeting industry standards and becoming PCI compliance.
• Expand your reach: Using Braintree, you can effectively reach more buyers in more places while growing your market share globally. Cross-border commerce can be enjoyed with the access to necessary technology, expertise and insights needed to sell to more people in more ways and take your business further.

How does Braintree work?

Braintree helps businesses of all sizes from around the globe. From small start-ups to large enterprises, integrating this solution with your eCommerce store allows you to accept and process payments in a seamless way.

Companies benefit from the technology, expertise and support of Braintree, backed by the scale and confidence of partnering with PayPal – one of the world’s most trusted payment brands. Offering features including fraud prevention tools, key transaction insights and reporting, data security, serverless connections and a range of payment methods, you can maximise business opportunities and revenue growth.

Our partnership with Braintree

Braintree is easily integrated with Magento 2, combining two top performing platforms to deliver next-generation eCommerce experiences. Innovation is at the core of everything Braintree do, and they are constantly evolving to stay inline with the online world. This integration can open the door to new opportunities, drive higher conversion through new distribution channels and deepen customer engagement with reward programs.

We have integrated this third-party payment solution to support esteemed merchants including American Medical ID, Henry London, N.Peal, Edifice and Penelope Chilvers delivering fast and seamless payment options. Interested to find out more about how Braintree can improve the performance of your online store? Contact Team Pinpoint today.