How Protectmaxx greatly reduces 3DS2 friction

3DS2 is known to add friction to the checkout process and hurt conversion rates. Luckily, there’s a better way to comply with SCA regulations. In this case, we provide an update on the results of the significant optimization work we have undertaken to reduce the negative impact of 3DS2 on our clients, to a very minimum.

 Recap: 3DS2 introduces friction and hurts conversion rates

Across the entire European eCommerce landscape, the adoption of the revised Payment Services Directive (PSD2) by the EU has raised significant challenges and concerns regarding the impact of these regulations on the customer experience.

While the adoption of PSD2 has heralded the requirement of SCA, it is the implementation of the latter that has become problematic. To comply with the authentication requirements, many industry players have relied on 3DS2 as their default mechanism. The problem with 3DS2 is that it lumps all transactions together and does not take into account the exceptions and exemptions that the SCA regulatory requirement allows.

In other words, companies add unnecessary friction to their checkout process, which leads to lower conversation rates, lower revenues and lower profits.

How Protectmaxx counteracts the friction introduced by 3DS2

For businesses running Protectmaxx, we have managed to reduce the negative impact of 3DS2 to a very minimum, all the while, remaining fully compliant with PSD2.

Protectmaxx is a flexible fraud protection solution that can intelligently discern between transactions that require SCA and transactions that don’t. This is done by evaluating various risk criteria and striking the right balance between PSD2 / SCA requirements and fraud risk.

The result is a better customer experience, increased customer loyalty, as well as higher revenues and profit margins.

Alphacomm reduces 3DS2 dependency below to 2%