Enhancing Security with 3D Secure: Protect Your Business from Credit Card Fraud

Jan 24th, 2024

ChargebacksPayment ProcessingFraud Prevention

In recent times, credit card fraud has become a growing global concern, and cybercriminals are employing increasingly sophisticated techniques to compromise cardholder information, leading to unauthorized transactions. Merchants processing transactions in a Card Not Present (CNP) environment, such as online or over the phone, face a higher risk of fraud chargebacks compared to face-to-face transactions.

To address this issue and bolster the security of online transactions, Ascent Payment Solutions recommends the implementation of 3D Secure (3DS). 3D Secure acts as an additional layer of security for online credit and debit card transactions, developed by major card networks like Visa (Verified by Visa), Mastercard (Mastercard SecureCode), and others.

When utilized effectively, 3DS can significantly reduce fraud chargebacks and shift the liability for such chargebacks from your business to the issuing bank. Ascent Payment Solutions offers a product called IDVerify, incorporating the 3DS functionality. Available through Barefoot software or as a stand-alone product, IDVerify allows you to receive authentication at the time of payment from the issuing bank, ensuring the person making the reservation is the legitimate cardholder.

While using IDVerify as a stand-alone product involves manual processes for transactions, it proves particularly valuable in cases of suspicious or last-minute bookings. The product ensures that you are protected against fraud chargebacks, providing peace of mind for your business.

Alternatively, the Code 10 Authorization process is another option, involving a manual call to the Authorization line at your processing bank. While similar to IDVerify in its manual nature, Code 10 Authorization doesn't offer the same level of protection against fraud chargebacks.

We also encourage merchants to verify Address Verification (AVS) and/or CVV information, but note that even with matching information upfront, fraud chargebacks can still occur. The only situation where issuing banks can be held liable for fraud chargebacks is when they authenticate the cardholder at the time of the transaction, making 3DS the only tool that offers actual fraud chargeback protection.

Ascent Payment Solutions is dedicated to providing you with the tools and resources needed to safeguard your business against credit card fraud. Explore the benefits of 3D Secure and IDVerify to secure your online transactions and protect your business from potential fraud risks.