3D Secure 2 MPI

3D Secure 2 Payer Authentication (3DS)

3DS provides assurance to the merchant that the buyer is the authorized owner of a credit card account, thereby providing protection from unauthorized payments, resulting in fewer chargebacks. Powertranz can offer 3DS authentication as part of the transaction process or as a standalone service for banks and other gateways. The advantage of 3DS is that the merchant has the ability to identify the enrolment status of the cardholder and their issuing bank prior to the payment authorization. This provides merchants with predetermined chargeback liability shift rights on the pending transaction before it is authorized and settled.

Protecting Online Sales Income with Chargeback Liability Shift

Visa, MasterCard and American Express offer chargeback liability shift for fraud related chargebacks (otherwise known as “I didn’t do it chargebacks”) when transactions are authenticated through 3DS. In other words, in the case of a 3DS authentication attempt or full authentication, if a customer claims that they did not make an online purchase or authorise it, the credit card issuer will now be liable instead of the merchant.