3DS Approves More Transactions, Without Added Risk

Authentication Model

Routing Decision

High Risk

Card Vaulting

Pre-Auth Fraud Decision

No 3DS

• Token Decision

• Card Network Decision

• Processor Decision

• Enhanced Authorization

• Major Card Network

• Processor A

• Network Token

• Frictionless 3DS

• Debit

• Processor B

• Card Number

Frictionless or Challenge 3DS

• Domestic Network
• Processor C

High risk transactions should be sent through 3DS to gather more information on the customer and shift liability to the issuing bank. This allows merchants to possibly save the sale without taking on additional chargeback risk.

Without 3DS, many of these transactions would be lost by default. By applying 3DS instead of automatically declining them, merchants expand approvals, capturing revenue that would have otherwise been left on the table.

Fraud at Pre-Auth Unlocks Payment Optimization

No 3DS

• Token Decision
• Card Network Decision
• Processor Decision

Pre-authorization helps merchants drive more approvals and reduce fraud before a transaction even reaches the bank. Pre-auth merchants:

• Send clean, context rich traffic to issuing banks
• Lower processing costs
• Eliminate card testing
• Leverage 3DS authentication to approve more transactions

Pre-Auth becomes even more critical as VAMP introduces fees for merchants exceeding card testing and fraud dispute thresholds.