Oct. 8, 2019
By Robin Reodica, product mangement executive, Bank of America Merchant Services
By the end of this year, American Express and Discover plan to implement Secure Remote Commerce (SRC) by EMV, which aims to streamline the checkout process for online shoppers. It’s a relatively new standard that major card networks are eagerly supporting — leaving many businesses wondering if they too should execute.
Here is more information about SRC, how it impacts consumers and businesses alike, and factors to consider before implementing.
What is SRC?
As more consumers engage in eCommerce and mobile payments, businesses and payment networks are increasingly focusing on improving the customer experience by making transactions easier, faster and safer. But even with these improvements, checkout operations continue to cause the most friction during the purchase journey, and we know the longer it takes for a customer to make a purchase, the greater the chance of abandoned shopping carts and loss of potential profit.
SRC promises to introduce a simplified, secure and consistent consumer checkout process across the web and card brands, thereby making the online purchase experience less complex for consumers while benefiting businesses.
Once a business implements SRC, a consumer can buy different products and services through a web browser or mobile app and receive the exact same experience at checkout. They’ll no longer need to re-key basic information such as shipping and billing addresses into each site they purchase from. Rather, once a shopper sets up their SRC credentials, their contact information and payment card data will be held in a single, secure system that is available for them to use as they peruse the internet and make purchases.
SRC does not replace your loyal (card-on-file) customer experience; instead, it provides an enhanced experience for new and returning customers. During the checkout process, a customer will be able to choose which payment method to use, and SRC will quickly authenticate that payment.
In addition to simplifying the purchase experience for the customer, SRC also eases the burden for businesses. For years, companies have had to manage different rules and integration standards for each major credit card network’s preferred checkout mechanism. With SRC, businesses can instead focus on integrating just one method that can support all of those networks.
Additionally, as card-not-present fraud continues to rise, security and fraud prevention are critical components of the SRC framework. Through tokenization and dynamic data, a consumer’s account number would be removed from the payment process to help create a more secure environment.
If your business supports Mastercard Masterpass or Visa Checkout today, you should immediately assess the impact of migrating to SRC. Both network programs are adopting the SRC solution, and they plan to commence in U.S. market communications by early 2020.
While there isn’t yet a mandate to support SRC, companies must watch its evolution closely to determine potential benefits, system impacts and operational risks that SRC might introduce in the context of their own business. For example, while greater use of tokenization can help protect against fraud, it may also affect data large companies currently use in some of the customer-facing parts of their operations such as returns and order tracking.
When it comes to implementation, there’s no ‘one size fits all’ answer. It’s critical that businesses evaluate potential assets and drawbacks of implementing the SRC standard against their goals and objectives, and prioritize their efforts accordingly. As a best practice, review business options internally or with a solution provider and define the ideal customer’s purchase journey — from browsing to checkout — to guide the online solution.
Cover image: iStock