3D Security for Online Payments (3D Secure 2.0)

This add-on provides an extra layer of payment verification to reduce fraud and protect against chargebacks.

To enable 3D Secure 2.0, you must activate it with your payment processor first. Once completed, you can turn it on in Buddi.

Overview

3D Secure 2.0 (3DS2) adds an extra layer of verification to online transactions to help reduce fraud and protect retailers from certain chargebacks.

It verifies customers by either:

• Validating transaction data (device, location, purchase behaviour) through the issuing bank; or
• Prompting additional authentication (e.g. SMS code, banking app approval)

This extra layer of security not only helps deter fraud but can also shift liability for chargebacks to the issuing bank, alleviating the financial burden on retailers.

In this guide, we’ll walk you through the essentials of 3D Secure, including setup, customer experience, costs, and its role in chargeback protection. For more information, please reach out to your payment provider.

FAQs

How do I sign up for 3D Secure?

• To sign up for 3D Secure, contact your payment provider to request activation. They will guide you through the setup process and inform you of any associated fees.
• Once it’s activated, simply let us know, and we’ll enable it on the Buddi side at no additional cost.

What does 3D Secure look like to customers?

• Most customers won’t notice any difference. They will see the standard credit card form for including CC Number, Expiry, and CVV.
• For higher-risk transactions, customers may be prompted to complete an additional verification step, such as entering a one-time code sent by their bank.

Are there costs associated with implementing 3D Security?

• Buddi does not charge additional fees for enabling 3D Secure.

How is it decided which cards receive a challenge and which ones don’t?

• This is determined by the issuing bank; Buddi does not control when challenges are triggered.

Can 3D Secure eliminate all of my chargebacks?

• No. 3D Secure primarily protects against “unauthorized transaction” chargebacks. It does not cover disputes related to service issues, fulfillment errors, or customer dissatisfaction.
  
  The issuing bank must be 3D Secure-enabled to verify transactions. If the cardholder’s issuing bank is not 3D Secure enabled, the transactions will return a "non-verified" response. Merchants aren't protected from liability in these cases.
    

Article: Chargebacks
 

More information on 3D Secure 2.0:

https://www.verifi.com/chargebacks-disputes-faq/what-is-3d-secure/

https://www.chargebackgurus.com/blog/understanding-frictionless-3d-secure-2.0-technology