3D Secure 2.0 is an authentication method for card-not-present transactions like online purchases. This technology aims to verify the person using the card for the transaction is the actual cardholder—and not a criminal or other unauthorized person.
SPEEDY SECURITY WITH REAL-TIME TRANSACTION REVIEWS
With 3D Secure 2.0, a merchant sends information to the customer’s bank (called the issuer or issuing bank) in real time. This information combines transaction-specific information like card details and contextual information such as the customer’s device ID or order history. The issuer uses machine learning to review the information provided and determine the likelihood of fraud. Based on the assessment, the bank does one of two things:
APPROVES THE TRANSACTION
If the bank believes the cardholder is the person making the purchase, the bank will authorize the merchant to proceed.
CHALLENGES THE TRANSACTION
If the information provided doesn’t match the norm or seems suspicious, the bank requests additional authentication. The customer needs to share a one-time password obtained via email or text. If the customer is authenticated during the challenge process, the merchant is safe to proceed. If not, the transaction is flagged as a high risk for fraud.
3D SECURE VENUE PARTNERSHIP STUDY
To help explain the tangible, financial benefits of 3D Secure, we partnered with an Etix client to conduct a study of results from adding 3D Secure transaction reviews to a multi-day event.
RESULTS FROM IMPLEMENTING 3D SECURE
decrease in number of chargebacks
decrease in chargeback dollar amount
prevented from loss due to chargebacks
Perhaps equally as impactful, the event reported ZERO percent drop in sales volume. This figure, coupled with the amount of staff time and frustration saved by dealing with fewer chargebacks, further creates a compelling case to consider an option like 3D Secure if chargebacks and fraudulent purchases are recurring issues for your business.
drop in sales volume
time saved and frustration avoided
HOW CAN I GET STARTED?
Want to see if 3D Secure or other fraud-fighting options are a fit for your venue? Our Client Services Team is here and happy to help get you started in the right direction.
