3-D Secure

Yeah

... comes how to manage 3D Secure transaction, in-app approval.

A lot of things came.

I think com- by combining the regulation and what we are doing by default at our side is provide a fa- good experience, also prevent you from fraud.

But, um, that address verification system check, uh, happens when you make a purchase.

Then there's another check, um, that isn't always, um, mandatory, but also happens often, which is this 3DS or 3D Secure check.

Yeah.

Um, this is basically largely brought in with, um, uh, to, to stop credit card fraud, and a 3DS check effectively queries your bank, um, for a two-factor or multi-factor code.

While eighty-nine percent of providers use biometrics and three-quarters meet digital accessibility standards, sixty-one percent pointed to high compliance costs as the biggest hurdle to improving market inclusion.

Also in Europe, OCR Studio has partnered with FinOn to connect document verification and card scanning with 3D secure payment authentication.

The collaboration lets merchants and card issuers check document authenticity, scan cards, and authenticate online shoppers directly on their devices without transmitting sensitive data off-site.

Heading to North Africa, Libya's attorney general has revealed that a nationwide audit of civil registry records uncovered more than three hundred and fifteen thousand unlawfully issued national ID numbers and over ten thousand fraudulent passports.

Now the friction that autonomous checkout still absorbs.

ACP's agentic checkout specification, the draft from January 16th, added 3D secure support.

If a session is flagged authentication required and the agent calls complete without an authentication result, the server must return requires 3DS.

It's not optional, and it's not a suggestion.

In every shipped implementation, the flow is delegated.

The agent builds the cart and hands a continue URL to a human.

And even the autonomous paths carry 3D secure and buyer review checkpoints, mandated in the standard, by the people who wrote the standard.

The second one, that the shared cart is the hard part of Daniel's idea.

So there was a high bar on merchants to look at transactions being scored because the merchant was going to lose money if they took a transaction that wasn't properly authorized or genuinely by a consumer.

And 3D Secure effectively filled that SCA gap to a large extent in Europe, less so in the US, but in a lot of other parts of the world, you know, strong customer authentication, you know, 3D Secure did the job reasonably well, because it gave coverage and it gave security.

But at the same time, I certainly worked with merchants in the past who would say, as long as I can keep my fraud threshold to 0.99 of 1% and stay the right side of the card schemes, I will just maximize throughput because what I lose in product at a 1% threshold fraud rate is less than I make out of maximizing the rest of the business.

So there were merchants out there who would happily maximize the fraud loss that they were going to have because they knew that they would make the most money that way.

And you just call it that teenage boy.

get him to sit with you while you get through the first and even maybe the next one or the one after that and very quickly you become familiar with it and it really is no issue you know and then you get the odd one you get the odd one i had a person earlier this year that wanted to subscribe to the workroom and she didn't have 3d secure on her her credit card And our platform uses 3D Secure and it's the only platform that we can use because that's our payment platform because it's the only one available legally for a South African subscription site.

And I talked to her through the whole thing and it didn't work and it didn't work.

And eventually it came out that she didn't have a mobile phone.

But the other thing I need to point out is If your credit card doesn't work, and I think, Beth, you've had this issue, if your credit card doesn't work, please don't be embarrassed.

We are forced to use the WooCommerce a platform via Payfast is the only way that we can do it legally.

And Payfast requires that your credit card is enrolled for 3D secure, which means that Gary, you'll know when you went through that you then have to approve it on your banking app and all of that sort of

thing.

When, when you have a recording functionality available, you can find out now why the FTDs are failing only for my 3D Secure mar- let's say, uh, um, 3D Secure transactions in a certain market.

[on-hold music] Hello, and welcome back to the Payment Expert podcast, your source for the latest news, insights, and analysis on the payments industry.

I'm Lewis Thomsett, down with a mild case of a cold today, so apologies, uh, audience if, if you hear a few sniffles.

Absolutely.

Actually, the last week we had, um, we had an incident on that, and that's why it's kind of a fresh for, fresh, fresh in my mind.

So I'll give an example where an operator could not find out, uh, the, the challenge in FTDs with a 3D Secure, okay? So their, their, their, their deposits were failing for FTDs, but they could not figure out why.

So only in, um, when, when you have a recording functionality available, you can find out now why the FTDs are failing only for my 3D Secure mar- let's say, uh, um, 3D Secure transactions in a certain market.

Now you have that data.