Strong authentication and 3D Secure: reducing online fraud

3D Secure adds an identity check to the payment and reduces stolen-card fraud disputes by 80 to 95%.

How 3D Secure works

After entering their bank details, the customer is redirected to their bank to confirm their identity (SMS code, app, biometrics). This step proves that the real cardholder approved the transaction.

Proven fraud with 3D Secure can almost never lead to a successful chargeback: liability shifts to the buyer or their bank.

A direct impact on fraud and margin

7 to 10% of payment attempts without strong authentication are fraudulent. A fraudster holding a stolen card number generally does not have the validation means required by 3D Secure.

Merchants who activate 3D Secure generally see an 80 to 95% drop in their fraud-related disputes.

3DS2: security without sacrificing conversion

Version 2 assesses the risk of each transaction and only interrupts the journey for suspicious cases; low-risk transactions are authenticated in the background, with no visible redirect.

It is also compliant with PSD2 and strong customer authentication (SCA), a legal obligation for European customers.

Fitting it into a complete anti-fraud strategy

3D Secure does not cover digital wallets (equivalent but separate protection) nor non-payment abuse such as fraudulent dropshipping.

Combine it with address verification (AVS) and behavioral scoring to cover most fraud scenarios, with manual vigilance on atypical orders.