3DS

Question 1

3D Secure Flow

Answer 1

• You enter your card details to confirm a payment
• You are re-directed to another page where your bank asks you for a code or password to approve the purchase
• The authentication page is co-branded by the card network (Visa Secure, Mastercard Identity Check)

Question 2

Benefit of 3D Secure

Answer 2

Requesting additional information lets you build in an extra layer of fraud protection and ensure that you only accept card payments from legitimate customers

Question 3

Liability Shift With 3d Secure 1

Answer 3

3D Secure shifts the liability for chargebacks due to fraud from your business to your customer’s bank

Question 4

Drawbacks of 3DS1

Answer 4

• Friction to the checkout flow
• Can lead customers to abandon the purchase
• A number of banks still force their cardholders to create and remember their own static passwords to complete 3D Secure verification
  
  • These passwords are easy to forget, which can lead to higher rates of cart abandonment

Question 5

3D Secure 2 aims…

Answer 5

to address the many shortcomings of 3D Secure 1 by introducing less disruptive authentication and a better user experience

Question 6

Frictionless Authentication - 3DS2

Answer 6

3D Secure 2 allows businesses and their payment provider to send more data elements on each transaction to the cardholder’s bank

• Shipping address
• Customer device ID

Question 7

2 Options Issuing Bank Has With 3DS2

Answer 7

1. If the data is enough for the bank to trust that the real cardholder is making the purchase, the transaction goes through the frictionless flow and the authentication is completed without any additional input from the cardholder
2. If the bank decides it needs further proof, the transaction is sent through the challenge flow and the customer is asked to provide additional input to authenticate the payment

Question 8

Why is more data being sent with 3DS2?

Answer 8

The ability to share more data using 3D Secure 2 aims to increase the number of transactions that can be authenticated without further customer input

Question 9

Is there still a liability shift in the frictionless flow?

Answer 9

Yes

Question 10

3DS2 - Better user experience

Answer 10

Instead of entering a password or receiving a text message, the cardholder can authenticate a payment through the banking app just by using their fingerprint or even facial recognition

Question 11

3DS Exception - Low Value Transactions

Answer 11

Transactions under 30€ can be exempt

Question 12

3DS Exception - TRA

Answer 12

If your store has the “TRA Acquirer 3DS2” option, you can ask the issuer for an exemption from strong authentication if the amount is below the threshold set by your financial institution.

Question 13

Are merchant initiated transactions exempt from 3DS?

Answer 13

Yes

Question 14

Soft Declines

Answer 14

The main reason for soft declines that occur in
in connection with 3-D Secure is
issuers do not accept the SCA exceptions requested by the merchant.

Question 15

Soft Decline - Best Response

Answer 15

The best procedure is to restart the payment
including 3-D Secure.