Payments that have been successfully authenticated using our 3D Authentication are covered by a liability shift. Should a 3D Authenticated payment be disputed as fraudulent by the cardholder, the liability shifts from you to the card issuer. These types of disputes are handled internally, do not appear in the Dashboard, and do not result in funds being withdrawn from your account.
What Happens If Fraudulent Transaction Occurs
In the case of a fraudulent transaction, it becomes authenticated through 3D Secure, the liability will shift to the acquirer. In short, you are protected against misleading chargebacks since the liability is transferred.
Customer Experience (For On Session Payment)
If you have Chargeback Protection enabled in ChargeAutomation, we require the customer to complete an additional verification step with the card issuer when paying.
For on-session payments, where customer is entering credit card for first time and paying right away, customer will be prompted to complete authentication step as shown below.
Customer Experience (For Off-session Payments)
For off-session payments, where customer has already entered credit card number when making a reservation (e.g. via Booking.com or booking site), customer will receive an email link to complete an additional authentication step before they can complete the purchase flow.
When they click confirm payment, authentication page will load up shown below
If a payment is authenticated, the liability for any fraudulent dispute that occurs on that payment is typically shifted from the merchant to the issuer. This means that in most cases, the merchant will not be responsible for fraud costs on authenticated payments.
Does Customer Have to Enter Credit Card Number Again?
No. If the credit card number is already collected from the customer (i.e. via Booking.com or other means), they will not be asked to enter the card number again. They only need to complete required verification step (i.e. Enter SMS code sent to card holder).
How Does A Transaction Become Authenticated
3D Secure Authentication is additional layer of protection provided by the card issuer. 3D Authentication takes over 150 data elements in order to make a decision.
These data include Device Fingerprinting, System language, country and time zone, Transaction Type, Cardholder Account Information, Cardholder Address
Low-value transactions - for transactions under 30 EUR
There are certain circumstances where payments that are successfully authenticated using 3D Secure do not experience a liability shift. This is rare and can happen, for example, if you have an excessive level of fraud on your account and are enrolled in a fraud monitoring program