Payment priorities for the forex industry

Flex 3DS

Speaking of fraudulent transactions, Forex brokers need to consider the Secure Customer Authentication (SCA) implementation based on the recent Payment Service Directive 2 (PSD2). One way to implement SCA is through 3DS, which aims to increase the security of electronic payments. Besides being PSD2 compliant, 3DS also counters fraud while increasing transaction success rate. These solutions protect brokers from high 3DS acquirer fees when transactions are declined. Additionally, 3DS also provides a frictionless checkout experience for customers.
We have been hearing more concerns of issues arising from 3DS2 implementation where it is causing friction within their payment process. Therefore, it is important for Forex brokers to partner with payment gateways who can provide 3DS2 solution and help combat these frictions. One way payment gateways can oppose these frictions is through 3DS routing. This allows Forex brokers to implement their very own 3DS2 strategy and maximise success rates. This strategy entails choosing between 3DS2, 3DS1, Low Value and Transaction Risk Analysis exemptions, and no 3DS. 3DS routing sends transactions to the most efficient authentication protocol while also taking exemptions into account.

Multi-acquirer setup & Intelligent Transaction Routing

It is crucial that Forex brokers choose payment gateways with a multi-acquirer setup. If a specific acquirer is down, having another acquirer helps them establish business continuity as payments can still be done through cascading. Cascading is a process in which failover transactions reroute automatically to a secondary acquiring bank.
Forex brokers can also enhance their strategy on selecting the acquiring banks they prefer for different kinds of customers. This is done by using Intelligent Transaction Routing (ITR). With preferred customization and automation levels, ITR automatically determines every transaction’s optimal route, subsequently allowing merchants to achieve the most optimal payment success rate. One will reap three main benefits from using ITR: Increased payment success rate, minimised transaction costs, and improved online experience.

Instant transfers: one-click payments

The Forex market is proven to be very time-sensitive. Therefore, it is imperative that payment gateways allow investors to execute instant transactions. One feature that Forex brokers can utilise is the ability to execute transactions through a single click. This is called one-click payments. Forex brokers should be able to provide a frictionless payment process for their customers through this feature.
A competent payment gateway will have this solution and the ability to monitor real-time transaction data for Forex brokers. This solution can help Forex brokers greatly improve customer retention, boost conversion rates, and reduce app abandonment rates.

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