Forter, an eCommerce fraud prevention company, has launched its PSD2-compliant merchant offering, Forter PSD2 Solution for Merchants. The comprehensive, payment processor-agnostic solution enables merchants to dynamically route customers to the path of least friction required, prevent all types of fraud and violations of business policies, and optimise the customer’s payment experience – all while meeting full PSD2 compliance.
As of 14 September 2019, the revised Payment Services Directive (PSD2) introduces the requirement for merchants to authenticate online transactions within the European Economic Area using Strong Customer Authentication (SCA). Under SCA, merchants have to introduce additional friction into the purchasing process for customers, which will lead to increased drop-off rates, reduce overall conversion rates, and provide a poor customer experience. These changes could ultimately hurt revenue, so merchants must mitigate these challenges and minimise the impact of SCA to protect as much of their revenue as possible, all while maintaining compliance with PSD2. In addition, merchants who use multiple payment processors will require separate integrations for each to ensure total PSD2 compliance – adding additional layers of complexity for merchants to tackle.
Forter PSD2 Solution for Merchants simplifies PSD2 compliance to provide merchants with accurate fraud prevention and the ability to deliver a great customer experience across different payment service providers and geographical regions, via a processor-agnostic integration. Forter assesses the trustworthiness and risk associated with each transaction in real-time and routes customers to the path of least friction – such as Total Risk Assessment (TRA) exemptions when applicable. The solution identifies and provides SCA when authentication is required and can block suspicious actors or transactions before authentication is needed. In addition, Forter’s fraud prevention platform protects merchants from threats not covered by PSD2 authentication requirements, such as account takeover and retailer policy abuse.
“There is confusion around the complex requirements of PSD2 compliance, but what is clear is the resulting impact on customer relationships with merchants,” said Michael Reitblat, CEO and Co-Founder of Forter. “The requirement of multi-factor authentication introduces friction into the transaction journey, potentially leading to purchase abandonment, reduced conversion rates, and decreased revenues. 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.”
Reitblat continues, “Another consideration is the evolution of fraud above and beyond the scope of PSD2. As we approach PSD2’s implementation deadline, we’ll likely see fraudsters focus on other types of fraud such as account takeover, loyalty programme fraud, and voucher abuse – as well as non-EU transactions. Merchants should ensure they are prepared by integrating a real-time fraud prevention solution that guarantees PSD2 compliance while protecting from all imminent threats.”
Forter processes more than 1 billion transactions each year and has raised more than $100 million in VC funding from companies like Sequoia Capital, Scale Venture Partners, Salesforce Ventures March Capital, and NEA.
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