Chargeback Protection is a valuable feature in ChargeAutomation that helps guard eligible guest payments against fraud-related disputes. It supports secure, smooth payment processing by using 3D Secure authentication where available.

Payments that are successfully authenticated through 3D Secure are usually covered by a liability shift. If a cardholder later disputes an authenticated payment as fraudulent, liability typically shifts from the merchant to the card issuer. These fraud disputes are handled internally, do not appear in the Dashboard, and do not result in funds being withdrawn from your account.

When you see the blue icon on a transaction in ChargeAutomation, the payment or authorization is protected from fraud disputes. Transactions covered by Chargeback Protection should not result in fraud-related dispute losses for those deposits. This feature is included at no additional commission cost.

If a fraudulent transaction was authenticated through 3D Secure, liability typically shifts to the issuer. In short, you are protected against eligible fraud-related chargebacks because liability is transferred away from the merchant.

Customer Experience (For On Session Payment)

If Chargeback Protection is enabled in ChargeAutomation, customers may be required to complete an additional verification step with their card issuer during payment.

For on-session payments, where the customer enters their credit card for the first time and pays immediately, the customer will be prompted to complete the authentication step.

Customer Experience (For Off-session Payments)

For off-session payments, where the customer has already entered their credit card details when making a reservation, such as through Booking.com or a booking site, the customer will receive an email link to complete an additional authentication step before completing the purchase flow.

When the customer clicks Confirm payment, the authentication page will load.

If a payment is authenticated, liability for fraudulent disputes on that payment is typically shifted from the merchant to the issuer. In most cases, this means the merchant is not responsible for fraud costs on authenticated payments.

Transactions processed without Chargeback Protection, such as through the Authorize Now feature or without proper authentication, may leave you vulnerable to fraud disputes. If authentication steps, such as ID verification, are not completed, guests may still be able to file fraud-related disputes. As a preventive measure, contact guests with incomplete verifications and encourage them to finalize the required steps.

Does Customer Have to Enter Credit Card Number Again?

No. If the customer’s credit card number has already been collected, such as through Booking.com or another booking channel, they will not be asked to enter the card number again. They only need to complete the required verification step, such as entering the SMS code sent to the cardholder.

For further details, explore these topics:

How Does A Transaction Become Authenticated

3D Secure authentication is an additional layer of protection provided by the card issuer. 3D Secure uses more than 150 data elements to help make an authentication decision.

These data elements may include device fingerprinting, system language, country, time zone, transaction type, cardholder account information, and cardholder address.

Low-value transactions, such as transactions under 30 EUR, may be exempt from strong customer authentication requirements.

In rare circumstances, payments that are successfully authenticated using 3D Secure may not receive a liability shift. For example, this can happen if your account has an excessive level of fraud and is enrolled in a fraud monitoring program.