MerchantGuard™3D Secure Rules: Smart Authentication Without Friction
3D Secure (3DS) adds an extra authentication layer for online payments, reducing fraud by 70% while keeping authorization rates high with smart rules. Get +5 GuardScore points.
What is 3D Secure?
3D Secure (3DS) is an authentication protocol that requires customers to verify their identity before completing a payment. Think of it as the "enter your password" step that pops up for high-value purchases.
When triggered, customers see a screen asking them to enter a one-time code (SMS), use biometrics (Face ID), or confirm via their banking app. Once verified, the payment goes through.
Why Use Smart 3DS Rules?
The problem with 3DS: It adds friction. If you enable it for ALL transactions, your authorization rate drops (customers abandon when they see the extra step).
Smart 3DS rules solve this: Only trigger authentication for high-risk transactions, letting low-risk payments flow through smoothly.
- Reduce fraud without hurting conversions:
Only high-risk transactions get challenged, low-risk flow through
- Comply with SCA (EU requirement):
Required for EU transactions over €30
- Shift liability to issuing bank:
If fraud happens on 3DS transaction, bank pays, not you
Recommended 3DS Rules (Copy-Paste Ready)
Rule 1: High-Value Transactions
Fraudsters target high-value orders. Adding 3DS here stops them without affecting small purchases.
Rule 2: International Transactions
Cross-border transactions have 3x higher fraud rates. 3DS protects you from international card testing.
Rule 3: New Customers
First purchases are riskier. Returning customers are trusted, new ones get extra verification.
Rule 4: High-Risk Countries
OptionalCountries like Nigeria, Indonesia have higher fraud rates. 3DS adds protection.
Rule 5: Velocity Check
OptionalMultiple rapid purchases = card testing. 3DS stops automated fraud bots.
How to Implement (Platform-Specific)
Stripe
- 1.Go to Dashboard → Settings → Radar
- 2.Click "Rules" → "Add Rule"
- 3.Copy rule: "Request 3DS if :amount: > 10000" (for $100+)
- 4.Add more rules using templates above
- 5.Test with card: 4000 0027 6000 3184 (triggers 3DS)
Braintree
- 1.Go to Control Panel → Processing → 3D Secure
- 2.Enable "Advanced 3D Secure 2.0"
- 3.Set rules: Amount threshold, country filters
- 4.Configure challenge flow (biometric preferred)
- 5.Test with sandbox cards
Checkout.com
- 1.Dashboard → Risk → Authentication Rules
- 2.Create rule: "Challenge if amount > $100"
- 3.Add country/velocity rules
- 4.Enable SCA exemptions for low-risk
- 5.Monitor auth rate in analytics
Expected Results (30 Days)
Before 3DS Rules
- • Fraud rate: 2.5%
- • Authorization rate: 90%
- • Chargebacks: 50/month
- • High risk
After 3DS Rules
- • Fraud rate: 0.75% (-70%)
- • Authorization rate: 88% (minimal drop)
- • Chargebacks: 15/month (-70%)
- • Medium risk → +5 GuardScore pts
Ready to Optimize Your Auth Rate?
Upload your transaction data to see which 3DS rules would work best for your business.
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