Archive for the 'Bank security' Category

CVV and Conversion Rates

Yesterday on the Intellivative blog, there were two interesting blog posts:

  1. AVS & CVV: When to use it and why?
  2. Does CVV affect e-commerce conversion rates?

The second one is the most intriguing to me because it presents a quandary for e-commerce businesses.  CVV–that 3-digit code on the back of the credit card–is one of the recommended practices for fighting fraud; yet, if you use it on your e-commerce site, it appears that it might actually reduce the number of orders you may get from your site. The surprising mythbuster comes from the E-commerce Checkout Report from Get Elastic, which found:

Conversion rates were a full 40% higher where Top 100 retailers did not request a CVV (Card Verification Value), yet over 55% of them do.

The other interesting part about it was even though conversion rates were higher when the e-tailers didn’t use the card code, still over 55% of them still use it–which implies that either they didn’t know their conversion rate might be higher without it (did they try an A/B test on CVV code?) or that the fraud reduction benefits of the CVV code outweigh the potential higher conversion rate.

As a consumer, I think I would like it better if the site did ask for my CVV code–it shows they’re doing the due diligence to check for fraud which not only protects them, it helps me, the consumer. After all, if someone is out there trying to use my credit card (who wouldn’t have the CVV number), wouldn’t it be better if they were inhibited in their spending spree by web sites who do check the CVV code?

I always thank people who ask to see my ID with my credit card–they’re protecting me by doing that. Even though it’s a hassle for me to get out my ID and show it to them, I’d much rather they ask for it and make sure that I am the rightful owner of the card.

But apparently I’m an oddity. Either the CVV code is too complicated to find–or too much work to enter for many consumers shopping at the top 100 e-commerce web sites. Or maybe consumers just aren’t aware that the card code actually helps protect their identity and their credit card?

Thanks to Get Elastic for putting the work into this study and challenging our paradigms.

Wells Fargo violates bank account security rules

Okay, this is way off the topic of usability, but I am so angry about this I just have to blog about it. Wells Fargo is my bank and for the most part, I love them. Their online banking system is very usable (which I love, except I wish they’d give me a more direct way to get to my billpay) and overall I’m really happy with them. Their staff is really friendly when I walk into the bank and they really go the extra mile to get me the information I need, even if it’s the details on a deposit that happened over a year ago.

But their auto finance department needs to take bank account security 101. If I’m even a few days late on my car payment, they have a rude person call me and harrass me to do my payment over the phone. I don’t really doubt that it’s Wells Fargo calling me, but I have no way of actually confirming that, so I always tell them I don’t want to do my payment over the phone and I will take care of it online. They get really angry about that. Today the lady on the phone actually called me “weird”. Would she give her account information to anyone who happened to call and say they were from Wells Fargo?

Banks have been trying to educate consumers to NOT give your account information out to callers. You should never, never, never give out your bank account number to someone who calls you, no matter who they say they are. Only if you initiated the call is it okay to do that. It just blows me away that Wells Fargo, one of the largest banks out there, would knowingly ask consumers to do this, perpetuating the problems with account fraud we have. And the fact that this woman thought I was “weird” because I wouldn’t give her my personal information and bank account number means that the message is not getting across to consumers, either. People are willingly giving them their account information over the phone when they have no way of confirming that it actually IS Wells Fargo calling.

 I tried to walk into a Wells Fargo bank to complain about it, but they told me they don’t have anything to do with auto financing and I would have to call their auto finance department. There is a problem there, but I don’t blame the innocent bank staff. I blame the idiot managers in the account finance department who are:

  1. Hiring rude people to harrass people about their car payments. If my account was months overdue, yeah, it’s okay to call, but not after a couple days. If you’re going to call me when my payment is a couple days late, you should be really, really nice about it.
  2. Asking people to give out personal information over the phone with no verification that they are who they say they are. By doing this, they are teaching consumers habits that only increases banking risk and makes it easier for fraudsters to hijack people’s bank accounts and steal identities.

It’s maddening and it’s got to stop!