Payment security in European online retailing is higher than ever. That is one of the results of the new E-Retail Report 2010 by Deutsche Card Services.
February 17, 2011 – Payment security in European online retailing is higher than ever. That is one of the results of the new E-Retail Report 2010 by Deutsche Card Services. The non-payment risk for the predominant payment method (credit card) dropped to a record low of 0.1725%. In other words: less than two out of 1,000 transactions fail, according to the Deutsche Bank subsidiary’s figures. If online retailers use the 3-D Secure technology, the chargeback ratio even declines further, to less than half of the above-mentioned figure. The two largest credit companies offer 3-D Secure under the brand names “Verified by Visa” or “MasterCard SecureCode”.
“Online retailing has suffered much less from the financial and economic crisis than other sectors. Moreover, the number of fraud-related non-payments is considerably lower,” says Jens Mahlke, member of the Management Board of Deutsche Card Services. This development clearly stems from cooperation with experienced payment services providers and a more widespread use of security measures. “While such measures are quite common in traditional stationary retailing, they have not been used routinely in online business,” explains Mahlke. “It is quite reassuring that retailers’ stance on this issue has changed so that the increasing popularity of online retailing has not led to a proportionate pick-up in risks.”
The E-Retail Report, which analyses purchasing and payment behaviour and non-payment risks in online retailing, was recently published for the fourth time in a row. In contrast to other research, the study by the Deutsche Bank subsidiary is based on real-life purchases and not on surveys. It starts from about eight million selected transactions settled via the Deutsche Card Services platform. All data are fully anonymised and comply with all data-protection requirements. The study is available for download from the online shop of Deutsche Card Services.
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