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Fraud & risk · Glossary

3-D Secure

Also called: 3DS, 3DS2, Verified by Visa, Mastercard SecureCode

3-D Secure (3DS) is an authentication protocol that shifts liability for fraudulent card-not-present transactions from the merchant to the card issuer. 3DS2 is the modern frictionless variant; it triggers a step-up challenge only on transactions the issuer flags as risky.

Why this matters to merchants

3-D Securesits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.

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