What is 3D Secure?
3D Secure is an authentication program rolled out by the card networks, designed to
protect online merchants from fraud. The solution sits between the shopping cart and
the gateway, authenticating transactions on the backend using consumer data. When
transactions get authenticated by the program, liability shifts to the card issuer in the
case of fraud.
How is this different from other fraud management tools?
3D Secure is different from other fraud management tools, because it offers fraud
PROTECTION, instead of fraud prevention. This means even if fraud occurs, merchants
are protected from the costs, as the card issuer takes the fall of the chargeback.
Some added benefits:
No false declines: Contrary to other fraud tools, all transactions are
accepted, qualifying the ones that get authenticated for fraud protection.
This means a robust fraud strategy that does not compromise revenue from
rejected transactions.
Protection from friendly fraud. Friendly fraud occurs when a customer
disputes the charge, even though he was the one who initially authorized it.
This, in effect, cannot really be stopped by fraud prevention tools (since
there’s nothing fraudulent to detect at the time). 3D Secure is the only real
way to provide protection from friendly fraud, as even if a chargeback is
initiated, the merchant is protected from it.
How does a merchant add 3D Secure to their checkout?
Does it work with all carts?
The authentication software works with most carts and can be integrated with your website
very easily. The solution is available in three options: (1) A SDK for custom PHP websites, (2) an
open API for all other carts that allow changes to the payment page and (3) pre-built plugins for
major shopping carts.
Is 3D Secure compatible with all gateways?
3D Secure is compatible with all gateways that have the fields required to capture 3D Secure
data. Examples of such gateways are NMI, USAePay and Authorize.net.
[email protected] / WWW.PAAY.CO / 646-847-7822 Is 3D Secure compatible with all
processing platforms?
3D Secure works with all processing platforms that have the fields required to capture
3D Secure data. Please note that First Data's Omaha platform does NOT support 3D Secure.
Does 3D Secure work on all transactions?
Currently, 3D Secure works with Visa and MasterCard transactions.
However, by the end of Spring 2017, we will also be providing protection
on American Express and Discover cards.
What is the effect on the consumer? Will anything change
on a merchant’s website?
Even though traditional 3D Secure used to require the consumer to authenticate the
transaction by providing an extra piece of information at checkout (either social
security, a password, date of birth etc), the rules have changed around and everything
happens on the backend, using risk-based authentication. This means that this has
absolutely no impact on the user experience.
Do all transactions get authenticated?
Most transactions get authenticated using risk-based authentication. There is still a
minority of transactions that need an extra piece of information to be verified. For
those transactions, a merchant can choose whether he/she wants to prompt a
consumer for verification at checkout (like with traditional 3D Secure), or send the
transaction to the gateway, without qualifying it for chargeback protection.
Which chargebacks does 3D Secure protect merchants from?
3D Secure authentication shifts liability to the card issuers on the following
chargeback codes:
Visa Reason code 75: Cardholder does not recognize transaction.
Visa Reason code 83: Fraud Transaction – Card Absent Environment.
MasterCard Reason code 4837: No cardholder authorization.
MasterCard Reason code 4849: Questionable merchant activity.
MasterCard Reason code 4863: Cardholder does not recognize – potential fraud.
[email protected] / WWW.PAAY.CO / 646-847-7822