A recent CardinalCommerce survey said 82 percent of e-commerce merchants who currently do not employ a consumer authentication solution are afraid that such solutions will scare off online shoppers. But with more and more fraud expected to migrate online in the coming years, the payments industry needs to do a better job of informing merchants why authentication in the card-not-present realm is crucial to data security.
The report, Use of Consumer Authentication in eCommerce: Annual Survey, 2014
, conducted jointly with The Fraud Practice LLC, surveyed card issuers, payment gateway operators, acquirers, other merchant service providers and merchants themselves. While a majority of payment service companies employ some type of 3D Secure online authentication, and most large merchants do likewise, the rest of the merchant population, especially in North America, apparently do not.