Using GoCardless to build a competitive advantage for SCA
There are several tactics businesses can use to minimise the impact of SCA and protect their conversion rates and revenue. This includes leveraging exemptions and investing in a product like 3DS2 that minimises the friction of two-factor authentication, although these do not completely remove the risk of conversion drop off.
Since payments through GoCardless are out of scope of SCA and fully PSD2 compliant, using GoCardless means you can avoid any potential conversion hit that comes with SCA implementation.
But how else can GoCardless help your business build a competitive advantage post SCA?
Using GoCardless payment intelligence to detect fraud
Direct Debit is a low risk payment method with much lower chargeback rates than cards. We are continuously working to enhance security even further – for example, we are developing a product that will help our customers to detect (and counter) fraud attempts more easily, by applying payment intelligence learned from millions of transactions in our network of more than 40,000 merchants.
This can be compared to what’s called Transaction Risk Analysis in the SCA world, where a merchant is allowed to forego SCA requirements if their payment provider’s fraud rate is below a certain threshold.
With this new functionality, GoCardless will analyse every transaction and help merchants spot and stop fraud attempts, without impacting conversion.
The customer preference for Direct Debit
As well as being PSD2 compliant, GoCardless is the preferred payment method for numerous types of recurring payments across Europe.
In a recent YouGov survey of around 12,000 consumers, bank debit/Direct Debit was found to be the most popular payment method in all four purchase types (online subscriptions, instalments, household bills and traditional subscriptions) in all six European markets surveyed (UK, France, Spain, Germany, Denmark and Sweden), plus a number of other international markets.
Additionally, In a GoCardless survey to 4,000 consumers in UK, France, Spain and Germany, 52% said they were likely or very likely to pay for a subscription by direct debit if it meant a smoother checkout.
What is GoCardless?
GoCardless provides a smarter way to take recurring payments from your customers around the globe, eliminating involuntary churn and reducing cost. We already help more than 40,000 businesses get paid on time.
To find out more about how GoCardless can help your business, talk to one of our experts.‹ View table of contents