Forter | Roadmap to Drive Higher Auth Rates
Maximise Conversions with Dynamic 3DS
Authentication Model
Routing Decision
Decline
Approve
High Risk
Card Vaulting
Pre-Auth Fraud Decision
No 3DS
Token
Decision
Card Network Decision
Processor Decision
Merchant Enhanced Authorization
- Major Card Network
- Processor A
- Network Token
- Frictionless 3DS
- Debit
- Processor B
- Card Number
Frictionless or Challenge 3DS
Domestic Network
Processor C
Best practice advises considering both the identity behind the transaction and issuer preferences to determine when and on whom to apply 3DS. By leveraging insights from the pre-authorization risk decision, merchants can employ a unique, success-maximizing approach to 3DS. For low-risk transactions, this means routing through a dynamic authentication model tailored to issuer preferences.
No 3DS:
Bypass 3DS when the transaction is likely to be approved without it, or for issuers where 3DS negatively impacts approval rates.
Frictionless 3DS:
For issuers that support frictionless authentication without impacting approval rates, trigger 3DS to shift liability. This will minimize the impact of first-party fraud.
Enhanced Authorization:
Share enriched data with banks and card networks to improve risk assessments and reduce false bank fraud declines.
Card Vaulting Unlocks Multiprocessor Flexibility
Authentication Model
Routing Decision
Decline
Approve
High Risk
Card Vaulting
Pre-Auth Fraud Decision
No 3DS
Token
Decision
Card Network Decision
Processor Decision
Merchant Enhanced Authorization
- Major Card Network
- Processor A
- Network Token
- Frictionless 3DS
- Debit
- Processor B
- Card Number
Frictionless or Challenge 3DS
Domestic Network
Processor C
To start, merchants can maximize their payment strategy at the point tokenization, even before a fraud decision is made.
When a customer inputs their card details at checkout, merchants can avoid PCI compliance burdens by sending details directly to a secure, processor agnostic card vault. A processor agnostic vault is key because it unlocks flexibility to route across multiple processors. A comprehensive card vault should offer the following capabilities:
- Secure payments and ease PCI compliance by replacing sensitive data with non-sensitive tokens.
- Update network tokens from card networks to boost revenue and lower interchange fees.
- Provide real-time updates of PANs to prevent declines, increase revenue, and cut costs.