Saferpay was one of the first PSPs on the market to start performing 3-D Secure 2 authentication as early as in May 2019. Since then, we have been continuously monitoring the acceptance rate of the new process among all players in the payment traffic ecosystem. Our goal was and still is to only switch our customers to the new 3-D Secure 2 process if we observe a stable acceptance rate that is at least equal to that of the old 3-D Secure 1 process.
Issuer readiness: We are currently seeing growing numbers of issuers going live with their 3-D Secure 2 systems and registering their credit cards for the new process. New systems can cause some difficulties at the beginning of the lifecycle. Cardholders also need to become familiar with the new process. As a result of these and other factors, the number of 3-D Secure 2 authentications is rising. At the same time, however, the acceptance rate still varies a great deal.
Acceptance rates: The most discussed advantage of 3-D Secure 2 – the so-called "frictionless flow" – which allows smooth authentication without additional cardholder interaction, is supported by the issuers. Around 58% of all 3-D Secure 2 authentications are "frictionless" and have a high acceptance rate of around 90%. By contrast, the so-called "challenge flow", in which the cardholder is asked for extra authentication, leads to a reduction in the acceptance rate. It has been shown that cardholders sometimes cancel the authentication process themselves if they receive incomprehensible instructions for authentication by their card issuer.
Summary: Saferpay continuously monitors the "readiness" of all participants in the 3-D Secure 2 process and automatically activates 3-D Secure 2 for all merchants in countries where the acceptance rate generally has no negative impact on business. We use the current acceptance rate of 3-D Secure 1 for comparison purposes. The "readiness" largely depends on how many issuers have implemented and tested their 3-D Secure 2 processes, as well as how many are currently setting up their systems and the overall quality of the implementation.
We will continue to monitor the progress of the issuers and changes in the acceptance rate closely to offer you an optimal conversion rate with the highest level of security and fraud protection.