Merchants think consumers value speed over security online. They're wrong
It's well established that implementation of EMV in a market has the result of driving payments fraud from the ATM and POS to the World Wide Web.
In a recent survey commissioned by payments provider Paysafe, 42 percent of online retailers estimated that at least 5 percent of the transactions on their sites were fraudulent.
And most of them seem to think there's not much they can do about it, according to Lost in Transaction, a new report based on the survey results.
Nearly two-thirds (62 percent) of merchants polled in the survey believe that lengthening transaction verification times to enable greater payment security would lead to higher rates of online shopping cart abandonment. Only slightly more than one-third (36 percent) think customers would appreciate tighter security.
But they seem to have the numbers completely backward.
In fact, nearly two-thirds (65 percent) of consumers are open to the introduction of more secure payment processes such as two-factor authentication. And more than half (58 percent) are willing to accept any security measures needed to eradicate fraud, the survey found.
What's more, only about 10 percent of consumers polled said they would abandon an online shopping cart due to excessive time required to verify a transaction. According to Paysafe, 42 percent of shoppers are more likely to abandon a purchase due to hidden transaction fees and delivery charges.
Lost in Transaction was commissioned by Paysafe and conducted by the London-based agency Loudhouse. The report is based on surveys in September of 300 businesses and 3,038 consumers in Canada, the U.K. and the U.S. about their attitudes toward fraud, security and payment methods.
Read the full report.