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3D Secure Chargeback Prevention

What is 3D Secure chargeback?

3D Secure is a protocol designed to be an additional security layer for online credit and debit card transactions. It requires cardholders to provide additional authentication, such as a password or one-time code, in addition to their card details. A chargeback occurs when a cardholder disputes a transaction and requests a refund from their issuing bank. 3D Secure chargeback refers to the process of disputing a transaction that was authenticated using 3D Secure. The goal of 3D Secure is to reduce chargebacks by preventing fraud, but it doesn’t eliminate them completely.

Does 3D Secure Prevent Chargeback Abuse?

Friendly fraud is a form of chargeback abuse that covers all situations in which a cardholder files for a chargeback and does not have a valid reason. Friendly fraud can still happen even when you use 3D Secure, even if it is not tied to fraud reason codes.

Let’s say that a cardholder orders a product from your online store. After obtaining a positive 3DS Verification, you are authorized to complete the transaction. The goods will then be shipped. The cardholder then files a chargeback claiming they have never received the item. This happens several weeks later. 3DS would not be admissible in this case since the claim by the cardholder does not relate to authorization.

3D Secure Chargeback Prevention

Our internal data indicates that approximately six out of ten chargebacks filed every ten by cardholders in 2023 will be friendly fraudulent. That leaves many more transactions exposed when we look at the severity of the problem. Given the potential danger that chargeback misuse tied to nonfraud reason codes presents, you need to acknowledge that it is still possible to eliminate chargebacks completely.

It’s not a given that chargeback prevention is impossible. However, we aren’t trying to say 3DS is useless.

This technology can offer great protection against criminal and fraud chargebacks. 3DS can be used to “chargeback proof” your transactions. However, you should not think of it that way. 3DS is just one part of a larger engine driving your chargeback management and fraud strategy.

4 Simple Steps to Prevent Chargebacks

Here are four simple steps to prevent chargebacks:

Provide a clear and accurate product or service descriptions:

Make sure your product or service descriptions are clear and accurate, so customers know exactly what they are purchasing.

Communicate clearly with customers:

Maintain open and clear communication with customers, respond promptly to inquiries, and provide clear instructions for any issues that arise.

Use fraud prevention tools:

Implement fraud prevention tools, such as 3D Secure, to reduce the risk of fraudulent transactions and protect against chargebacks.

Resolve disputes promptly and fairly:

If a customer does initiate a chargeback, respond promptly and fairly to resolve the dispute. This may include providing documentation or evidence to support your case. The quicker you resolve the dispute, the more likely it is that the customer will drop the chargeback claim.


In conclusion, 3D Secure is a valuable tool for preventing chargebacks and reducing the risk of fraudulent transactions. By requiring additional authentication from cardholders, it provides an extra layer of security that helps to protect merchants from fraudulent activity. However, it is important to remember that 3D Secure alone is not a foolproof solution and it is important to implement other chargeback prevention strategies, such as clear and accurate product descriptions, clear communication with customers, and prompt resolution of disputes. By taking a comprehensive approach to chargeback prevention, merchants can reduce their risk of chargebacks and ensure a positive customer experience.

How does 3D Secure help prevent chargebacks?

By requiring additional authentication, 3D Secure helps to prevent fraudulent transactions, which is a common cause of chargebacks.

Is 3D Secure foolproof?

No, 3D Secure is not a foolproof solution. While it does provide an additional layer of security, it does not eliminate the risk of chargebacks completely. Merchants should also implement other chargeback prevention strategies to reduce their risk of chargebacks.

What other steps can I take to prevent chargebacks?

In addition to using 3D Secure, merchants can also take steps such as providing clear and accurate product descriptions, maintaining clear communication with customers, and resolving disputes promptly and fairly.

Can I dispute a chargeback if the transaction was authenticated using 3D Secure?

Yes, even if a transaction was authenticated using 3D Secure, a cardholder can still initiate a chargeback if they dispute the transaction. Merchants should respond promptly and fairly to resolve the dispute and provide any necessary documentation or evidence to support their case.

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