3-D Secure adds a step, so it is best applied selectively — on higher-risk transactions rather than every sale — to balance fraud protection against checkout friction.
Each card network runs its own version: Visa Secure, Mastercard Identity Check and American Express SafeKey. The current version, 3DS2, sends the issuing bank more information about the purchase and the device. That lets the bank approve many low-risk payments without asking the customer anything; only riskier ones get a challenge, such as a one-time code or a banking-app approval.
When a payment passes 3-D Secure, the liability for most fraud chargebacks usually moves from the merchant to the issuing bank. It does not cover disputes like goods not received or not as described.
Common questions
- What is 3-D Secure authentication?
- It is a check during online checkout where the customer's bank confirms the person paying is the real cardholder. With 3DS2 this often happens in the background; when it does not, the customer approves the payment in their banking app or with a code.
- Does 3-D Secure prevent fraud chargebacks?
- It reduces them. A payment that passes 3-D Secure is harder to use with a stolen card, and liability for most fraud-coded chargebacks usually shifts to the issuing bank. It does not stop disputes about delivery or product quality.
- Does Stripe use 3-D Secure?
- Yes. Stripe, like most processors, supports 3-D Secure and can request it on payments that look risky or where regulations require it, such as many European card payments.