You can also use Radar rules or the API to control when to prompt customers to complete 3DS authentication, making a determination for each user based on the desired parameters. Stripe triggers 3DS automatically if required by a regulatory mandate such as Strong Customer Authentication. Controlling when to present the 3D Secure flow In these cases, if you choose to counter the dispute, Stripe automatically adds the outcome of the payment’s 3DS authentication to your evidence details, but we encourage you to include additional details to improve your odds of winning the dispute. In very rare cases, liability shift might get downgraded post-authorization, or the card networks’ dispute rejection system may fail to catch liability shift for a transaction. For example, Visa doesn’t support liability shift for businesses engaging in wire transfer or money orders, non-financial institutions offering foreign or non-fiat currency, or stored-value card purchase or load. Certain networks have also exempted some industries from 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. Sometimes payments that are successfully authenticated using 3DS don’t fall under liability shift. Although the cardholder didn’t complete 3DS authentication, liability can still shift to the issuer. During the payment process, the cardholder isn’t prompted to complete 3DS authentication, because the card isn’t enrolled. This can happen if the issuer’s 3DS server is down or if the issuer doesn’t support it, despite the card network requiring support. Liability shift might also occur when the card network requires 3DS, but it isn’t available for the card or issuer. As such, you should make the appropriate decisions regarding your business and how you manage disputes if they occur, and how to avoid them completely. If a customer disputes a payment for any other reason (for example, product not received), then the standard dispute process applies. Include information about what was ordered, how it was delivered, and whom it was delivered to (whether it was physical or electronic goods, or services). To prevent no-reply chargebacks on 3DS charges, be sure to submit sufficient information about the charge. If you receive an inquiry for a 3D-Secure-authenticated charge, it’s vital you respond because if you don’t, the cardholder’s bank can initiate a financial chargeback known as a no-reply chargeback that could invalidate the liability shift. This type of dispute doesn’t precipitate a chargeback because it’s basically a request for information. You might receive a dispute inquiry on a successfully authenticated payment using 3DS. It’s still possible that you might receive a low percentage of fraudulent disputes, and we list a few cases below where the liability shift rule might not apply. In practice this means you shouldn’t receive disputes marked as fraudulent if the payment was covered by the liability shift rule, but you’ll still receive an Early Fraud Warning. If a cardholder disputes a 3D Secure payment as fraudulent, the liability should shift from you to the card issuer. The liability shift rule applies to payments that are successfully authenticated using 3D Secure. Want to use Stripe’s 3D Secure service with other processors? Contact support. 3DS is optional in other regions but you can still use it as a tool to reduce fraud. The Strong Customer Authentication regulation as part of PSD2 in Europe and similar regulations in the UK, India and Australia may require the use of 3DS for card payments. Watch our video for an example of an authenticated checkout flow. This process is familiar to customers through the card networks’ brand names, such as Visa Secure and Mastercard Identity Check. Typically, you direct the customer to an authentication page on their bank’s website, and they enter a password associated with the card or a code sent to their phone. Complies with Strong Customer Authentication regulation in Europe.įor extra fraud protection, 3D Secure (3DS) requires customers to complete an additional verification step with the card issuer when paying.
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