SecureBuy tech addresses merchant liability issues in 3-D Secure transactions

3-D Secure payer authentication is used globally by merchants of all sizes as an added layer of security to reduce online payment fraud. According to the 2013 True Cost of Fraud study by LexisNexis, 15% of all merchants and 35% of large merchants in the U.S. deploy 3-D Secure. This data clearly demonstrates that merchants understand the need and realize the benefits of 3-D Secure / payer authentication. 3-D Secure is the only authentication solution available to merchants that allows them to authenticate a consumer at the time of checkout directly with the consumers' issuing bank. Additionally, as part of the 3-D Secure process, the merchant has the ability to receive interchange advantages (lower processing fees) and to shift the financial liability to the cardholders' bank.

The new SecureBuy technology addresses the issue of merchants retaining liability for transactions even after receiving an "authenticated" 3-D Secure response code from the cardholders' issuing bank at the time of authentication. Currently, merchants would have to manually review the issuing banks response code AND the payment gateway authorization response code to be able to identify if the issuing bank accepted or rejected the financial liability of any given transaction in a post mortem environment.

SecureBuy has developed a patent pending 3DS Decision Engine to increase the automated efficiencies of any 3-D Secure MPI for merchants. SecureBuy's 3DS Decision Engine provides merchants the ability to accept or reject transactions where the cardholders' bank isn't taking on the liability. If the 3DS Decision Engine detects the liability shift does not take place, the consumer can be prompted to present another card for payment. The 3-D Secure authentication process could then be applied to the new presented card. By automating the entire 3-D Secure risk assessment process, the merchant is able to lower their overall risk exposure and reduce chargebacks. Merchants improve the consumer expeerience by removing the manual review process and eliminating false positives or inadvertent customer "insults."

"The 3-D Secure authentication and authorization processes may seem complex to merchants, but 3-D Secure MPIs and the SecureBuy 3DS Decision Engine are relatively easy to implement. Once in place the automation handles all of the heavy lifting for the merchant," states Greg Wooten, CEO of SecureBuy.