Dankort Secured by Nets – What is it?

Dankort Secured by Nets is the name of a new security measure on Dankort, which asks the customer / cardholder to enter an additional code that he / she receives on his mobile phone. Or as Nets itself writes: “Two factors (Dankort + phone number) that help reduce the risk of third-party abuse of your Dankort.” If you customer is in an area with my cellphone coverage, and therefore cannot receive an SMS, the customer is able to use NemId instead, allowing the transaction to be completed.

Possibly your customers have already been registered via their bank (assuming the bank has their customer’s mobile number), but it is more likely that the customer will be required to register the first time they “meet” the new solution. It’s not super cool to be the webshop that has to send the customer through the extra step, but hopefully it will be evenly distributed and after all, it’s something you only have to do once (as a cardholder).

It does not cost anything to use Dankort Secured by Nets, not beyond your normal fee to complete a Dankort transaction.

The cardholder will be met by the requirement for an extra code when he or she is shopping for more than 450 dkk, the first time a card is registered for repeated payments (what Nets call “Card-on-File”) and sometimes “randomly” to increase safety. All subsequent times a “Saved Card”  is used will, in turn, be without the additional security step, no matter the amount.

Can I choose if I will use it on my webshop?

No, not if you offer Dankort as a form of payment. Unlike the Visa and Mastercard solution, Nets mandates that all webshops offering Dankort as a payment form will be connected to the “Dankort Secured by Nets”. Nets estimates that only about 20% of all transactions will require the extra SMS code, but it is a statistical consideration. Do you only sell goods or services over 450 dkk, then your customers will run into it with every Dankort payment on your site. If you only sell for less than 450 dkk and have no subscription or “save card” solutions, your customers will never meet the requirement for an additional code.

As your PSP / Payment Module vendor are ready with the development and certified, the solution will be rolled out to your webshop. Many are already ready and the rest will follow very soon. This means that if you act as a private person, you will not – yet – consistently run into the solution, even if you shop for more than 450 dkk, but by the end of 2017, my guess is that all webshops are connected.

Pros and cons?

If you compare with 3D Secure (a similar solution linked to Visa / MasterCard), the clear disadvantage of Dankort Secured By Nets is that there is no so-called “liability shift”, ie. That if your business experiences fraud in spite of this extra security step, the webshop carries the risk and you lose your money and your goods. With there is Liability shift – as is the case with Visa and Mastercards 3D secure solution – the card issuer covers any loss due to fraud, so your webshop will not suffer any loss.

One clear advantage is that ALL webshops that receive Dankort will use this. In other words, the Danes will quickly get used to entering the extra code and it is therefore expected that your conversion will not suffer (at least not if you look at in in a longer perspective).

And you can say that if this solution helps prevent your webshop from experiencing fraud and loosing money, then this is very positive and such a solution is long overdue! The figures show that in the businesses that use Visa & MasterCard transactions with 3D Secure, the fraud is reduced by up to 70% and I will cross my fingers for something similar to be the case here.

What can I do to make sure the experience is as positive as possible for my customers?

Information is a good thing – put Nets little movie on your website (see link below – it seems to be only in Danish) and/or explain in text why it is an advantage for your customer that there is this security step and that it will minimize the possibility of their card being used for fraud (in any case for larger amounts). And make sure your customer service is well-informed about the sign-up flow so they can help a customer “stuck” in this flow (as it may mean that they do not buy your item, if they are unable to complete the signup).

Nets har made a small film, targeting the cardholder, that explains how easy and safe it is: Nets film

See more about Dankort and Dankort Secured by Nets (In Danish only)

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