Posts Tagged 'credit card'

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.