Balancing ecommerce conversion, customer experience, and PSD3 compliance

Wednesday 21 February 2024 09:38 CET | Editor: Irina Ionescu | Interview

We interviewed Emilio Rocchi, Director Marketing Planning International at LexisNexis® Risk Solutions, about the upcoming PSD3 and what changes it brings to better fight fraud and money laundering.

The European Commission has published draft legislation for the third Payment Services Directive (PSD3). What are some anti-fraud measures included in the PSD3 proposal and how will these impact ecommerce businesses?

Fraud mitigation is a key part of PSD3. The role of preventing fraud is going to broaden beyond traditional areas such as issuers, with many players in the payments ecosystem now taking on this responsibility. One of the most important new measures is data sharing. Under PSD3, PSPs will be allowed to process personal data without requiring explicit consent from the customer, as long as the information is used for fraud prevention purposes. We believe access to more accurate, more comprehensive data is critical to managing fraud risk and we’ve developed deep expertise in data sharing. Our consortium capabilities allow LexisNexis® Risk Solutions customers to share information to collectively fight fraud within the boundaries of GDPR and national data privacy regulations. This layer complements an organisation’s local intelligence and the global shared intelligence harnessed through LexisNexis® Digital Identity Network®, allowing organisations to make more accurate risk decisions and enhancing protection against fraud.

A significant shift from PSD2 involves SCA (Strong Customer Authentication), where PSD3 introduces the possibility to use two authentication factors of the same category. This measure simplifies the payments process but has the potential to weaken the standards of authentication.

Finally, the success of Confirmation of Payee in the UK and the Netherlands will be adopted across the entire PSD3 jurisdiction. This will have a considerable impact on liability ownership. Third parties and PSPs will need to make sure they conduct transaction risk assessment and confirm who is the beneficiary of that payment. For instance, if we are initiating an instant payment and transfer funds to a third party, we should be able to verify the IPA account. Within Europe, the IBAN account number matches the owner’s name of that account, so this will protect the payer while giving greater confidence that they are paying the true beneficiary.

Which stage in the customer journey is the most targeted by fraudsters?

Fraudsters are not only targeting the conventional customer touchpoints of new account creation, logins and payments, but also change of details events. This emphasises the need for ecommerce businesses to play their part in protecting the entire customer journey, as once the fraudster has the opportunity to change details, they could change the shipping address or phone number to illegitimately receive one-time passwords (OTP). 

Investing in fraud education for customers is also a necessity. The weakest links in the chain are the customers themselves. During any digital touchpoint, there could be a window of opportunity for fraudsters to interact with legitimate customers and try to influence their behaviour and their decision to make an unknown fraudulent payment.

How can ecommerce businesses streamline the payments touchpoint while ensuring fraud risks are kept at bay? 

We understand the need to secure a payment with limited impact to customer experience is paramount for ecommerce businesses. 

At LexisNexis® Risk Solutions, we can help identify risks and passively authenticate transactions before the payment is authorised. These security checks can occur without adding unnecessary friction before the payment, by passively leveraging transaction and identity data. So, if you are a PSP or a merchant, before you even send the transaction to a PSP to be authorised, you can leverage the data intelligence we provide to identify a purchaser’s behaviour, the IP location, and the amount of that transaction.

How should ecommerce businesses elevate their fraud prevention strategy in response to increasingly complex fraud challenges? 

Data sharing, aggregating insights across channels, and using intelligence from global networks is key for ecommerce businesses. 

Interactions today are dynamic, interconnected, and instant. To help prevent fraud, businesses need context and insights that link customers across digital, physical, and behavioural dimensions. By leveraging the intelligence from all available channels, as well as from different industries using a global repository of intelligence, we become better prepared to tackle complex fraud and events that could put a legitimate customer at risk. To be able to consider insights from all touchpoints, from ATM withdrawals to point of sale transactions, digital banking, and card-not-present purchases in a single view, provides an enhanced level of decisioning. 

Many organisations utilise a range of fraud intelligence and analytics, but few are optimising their fraud solution strategy to capture a holistic, unified view of risk. Businesses leveraging a multi-layered approach based on a unified view of physical, digital, and behavioural identity will have the ability to respond more effectively to current and emerging fraud threats. 

A multi-layered solution strategy that also incorporates near real-time event data from a global consortium will help improve fraud capture and deliver additional benefits such as: 
  • Strengthen security without sacrificing customer convenience 

  • Reinforce high-risk customer touchpoints with tailored, risk-appropriate assessment 

  • Enable identity assessment from a robust, networked perspective 

  • Proactively uncover fraud risk signals and anomalies before an identity enters the customer ecosystem 

  • Harness the power of global shared intelligence through LexisNexis® Digital Identity Network® and access data from billions of annual transactions across diverse industries.

LexisNexis and the Knowledge Burst logo are registered trademarks of RELX Inc. Digital Identity Network is a registered trademark of ThreatMetrix, Inc. Other products or services may be trademarks or registered trademarks of their respective companies. Copyright © 2023 LexisNexis® Risk Solutions.


This editorial is part of The Paypers' Fraud Prevention in Ecommerce Report 2023-2024, the ultimate source of knowledge that delves into the world of fraud prevention, revealing the most effective security methods for companies to stay one step away from bad actors and secure their businesses.


About Emilio F. Rocchi

Emilio F. Rocchi is specialised in International and Cross Border Payments and is based in the Netherlands. Prior to his current position, he worked as a Senior Solutions Consultant Fraud and Identity at LexisNexis® Risk Solutions. Before joining LexisNexis® Risk Solutions, he was a Solutions Consultant, specialising in ecommerce and Latin American payments at Ingenico e-payments. He holds a Master’s Degree in International Relations from the National University of Rosario in Argentina and Magister Rerum Publicarum in Public Administration from the University of Speyer, Germany.

About LexisNexis Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare, and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit and


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Keywords: risk management, PSD2, PSD3, fraud management, fraud detection, online fraud, ecommerce, behavioural biometrics, digital banking, checkout optimisation , digital identity, PSP, authorisation rate, IBAN, SCA
Categories: Fraud & Financial Crime
Companies: Lexis Nexis Risk Solutions
Countries: Europe
This article is part of category

Fraud & Financial Crime

Lexis Nexis Risk Solutions

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