The Airline & Travel industry relies on online channels to generate revenues. Compared to other industries, the average basket value is very high, making it an attractive target for fraudsters. It is therefore essential for merchants of this industry to choose the best use of all relevant fraud prevention solutions, including 3-D Secure authentication

1. 3-D Secure 2015 benchmarking study
for Airline & Travel industry
The Airline & Travel industry relies on online channels to generate revenues. Compared to other industries, the average basket value is
very high, making it an attractive target for fraudsters. It is therefore essential for merchants of this industry to choose the best use of
all relevant fraud prevention solutions, including 3-D Secure authentication.
METHODOLOGY USED FOR THE BENCHMARKING STUDY
This 3-D Secure benchmarking for the Airline & Travel industry involved a review of More than 80 million transactions made between
January, the 1st of 2014 and November, the 15th of 2015. The transactions involved 4,601 webshops. 118 merchants have responded to
the survey in order to better understand 3-D Secure adoption and practices according to country, merchant location and business type.
Survey respondents
Company annual revenue Industry Region
>1b$ 51
500m-1b$ 22
300m-500m$ 11
100m-300m$ 13
50m-100m$ 4
10m-50m$ 10
10m$ 6
Airline 84
Other travel industry
companies 18
OTA* 16
Europe 49Middle East 12
North America 15South America 6
Asia 27Oceania 2
* Online travel agencies
IMPACT OF 3-D SECURE ON CHARGEBACKS
Decrease of chargeback rate when using 3-D Secure
Decrease of chargeback rate when using 3-D Secure - per industry
Decrease of chargeback rate when using 3-D Secure - per region
Airline
OTA*
Other travel
industry companies
Decreased by 25% to 50%
I don’t know
Decreased between 10% and 25%
Decreased more than 50%
Decreased by less than 10%
Decreased by 25% to 50%
I don’t know
Decreased between 10% and 25%
Decreased more than 50%
Decreased by less than 10%
0-10%
17%
10-25%
18%
25-50%
12%
50%+
19%
I don’t know
33%
10%
8% 8%
23%
51%
20152014
As the survey results point out, 3-D Secure shows a significant and positive impact on chargebacks and fraud decrease while also
negatively impacting conversion and revenues. Online Airline & Travel webshops therefore implemented diverse 3-D Secure prac-
tices. See hereafter.
0-10%
28%
10-25%
16%
25-50%
8%
50%+
3%
I don’t know
28%
IMPACT OF 3-D SECURE ON DROP OFF
Drop off increase when using 3-D Secure
Drop off increase when using 3-D Secure - per industry
Other travel
industry companies
Airline
Increased by 25% to 50%
I don’t know
Increased between 10% and 25%
Increased moret than 50%
Increased by less than 10%
OTA*
Drop off increase when using 3-D Secure - per region
Increased by 25% to 50%
I don’t know
Increased between 10% and 25%
Increased moret than 50%
Increased by less than 10%
* Online travel agencies
23%
28%
5%
3%
41%
20152014
Usages of 3-D Secure - per industry
All the time 31% Flexibly 53%Not at all 16%
All the time 31% Flexibly 53%Not at all 16%
Usages of 3-D Secure - per region
When do merchants use 3-D Secure in a flexible way?
Airline
OTA *
Other travel
industry company
USAGES OF 3-D SECURE
All the time 26%
Flexibly 53%
Not at all 21%
* Online travel agencies
All the time 31%
Flexibly 53%
Not at all 16%
2014 2015
Card country
Fraud risk score
IP country
Issuing bank
Amount
Time of booking
Itinerary
Channel (desktop, mobile, tablet, etc)
Government/Regulatory
Other (please specify)
Don't know 6%
11%
24%
24%
26%
30%
30%
31%
31%
43%
57%
0%
25%
13%
21%
33%
25%
21%
25%
21%
46%
54%
20152014
DISCOVER FLEX3DS
3-D Secure levels of adoption and drop off rates vary greatly across the world. It is important to take into account local online
behaviour and to adopt a selective 3-D Secure approach when selling internationally. Increasingly, more online businesses are
implementing such an approach.
With Flex3DS, Ingenico ePayments offers merchants an easy-to-use and highly flexible tool that activates and deactivates
3-D Secure based on transaction context.
Merchants using Flex3DS can, in a few clicks, define the activation of 3-D Secure based on the risk associated with the transaction
(via Ingenico Fraud Expert suite). The issuing country of the card used, the purchase amount, the channel, and other variables can
be factored into the decision-making process.
When combined with the Flex3DS feature, Ingenico advanced fraud prevention solutions provide a complete set of sophisticated
tools to help merchants find the best balance between fraud prevention and revenue optimization.
ABOUT INGENICO EPAYMENTS
Ingenico ePayments is the online and mobile commerce division of Ingenico Group. We connect merchants and consumers,
enabling businesses everywhere to go further beyond today’s boundaries and creating the future of global commerce. As industry
leaders since 1994, our innovative spirit drives us forward across all channels. We are the trusted partner of over 65,000 small
and large merchants who rely on us to make payments easy and secure for their customers. With advanced data analytics, fraud
management solutions and cross-border commerce expertise, we help merchants optimize their business and grow into new
markets around the world. For more information, visit www.ingenico.com/epayments or follow us on Twitter or LinkedIn.
ABOUT AIRLINES INFORMATION NETWORK
Airline Information is an established leader and innovator in commercial aviation conferences. Since 2005, Airline Information
has hosted thousands of airline and travel professionals at the company’s groundbreaking conferences, forums, workshops and
networking events. Airline Information is also home to the airline industry’s most forward-thinking research in loyalty and
merchandising. Airline professionals, marketers, investment firms and industry suppliers turn to Ai for the latest trends, advisory
and industry guidebooks.
3-D Secure is a security protocol designed namely by Visa and Mastercard. As an additional security layer, it helps merchants to reduce
fraud risk, yet adds an extra step in the payment purchase. The purpose is similar to a PIN code or writing a signature for a transaction
on a physical transaction. In practice, enrolled issuers implement an additional step of consumer authentication.
3-D Secure has been designed to allow merchants to:
• Reduce their online fraud
• Mitigate their risk (when liability shift applies)
• Obtain reduced interchange fees
3-D SECURE IN A NUTSHELL
Issuers have implemented very heterogeneous authentication methods for 3-D Secure:
• Static password
• Dynamic and unique password
• Risk based authentication
• Card reader
• Digipass entering a PIN code
3-D Secure
JCB
J/Secure
The results show how much 3-D Secure policy impacts internal departments in a company. The way 3-D Secure is handled impacts the
revenues of a company, the risk management and the fraud prevention.
3-D SECURE PRACTICES
Who decides about 3-D Secure policy in the company:
E-Commerce Payment Finance Fraud Others
37 %
14 %
21 %
16 %
11 %
20142015
20152014
36 %
14 %
25 %
13 %
18 %
Netherlands
SaudiArabia
Romania
Belgium
Russia
Italy
China
Singapore
Ireland
Switzerland
Austria
Australia
France
Peru
Spain
Norway
UnitedKingdom
Sweden
Germany
Chile
Portugal
Japan
Canada
Brazil
Argentina
Mexico
UnitedStates
Colombia
10%
20%
30%
40%
50%
60%
70%
80%
3-D Secure adoption per card country:
Share of card transactions authenticated with 3-D Secure (Source: Sample of Ingenico 2015 transactions data in Airline & Travel industry 80m transactions).