You must enroll for Buyer Authentication in the Fraud Protection Services suite to make use of Buyer Authentication filter. The filter is grayed out on configuration pages if you are not enrolled.
Buyer Authentication refers to the card-sponsored authentication services such as Verified by Visa and SecureCode that make use of the 3-D secure protocol. These authentication methods prompt buyers to provide a password to their card issuer before being allowed to execute a credit card purchase.
Click here for more information on Buyer Authentication.
The filter is triggered when the customer’s identity is not adequately authenticated, according to criteria that you specify.
Although MasterCard and Visa both use the underlying 3-D Secure protocol to implement Buyer Authentication, they have different liability rules regarding buyer authentication results. Those rules appear in the table.
MasterCard converts 3-D Secure results into UCAF fields. To simplify for the merchant, PayPal normalizes all responses into the values listed in the table.
Buyer Authentication returns one of the following responses in the AUTHENTICATION_STATUS name/value pair (values are for Visa USA region):
|
Result |
Description |
Liability Impact (subject to change) |
|
Y |
Successful authentication—the password was correct. |
Both Visa and MasterCard shift liability for fraud from the merchant. |
|
A |
The merchant attempted to authenticate the buyer, but the issuer does not support b buyer authentication. |
Visa shifts liability for fraud from the merchant. MasterCard does not shift liability for fraud from the merchant. |
|
N |
Unsuccessful authentication—the password was not correct. |
Neither Visa nor MasterCard shift liability for fraud from the merchant. |
|
U |
Authentication could not be completed due to network error. |
Neither Visa nor MasterCard shift liability for fraud from the merchant. |
|
F |
Card issuers authentication credentials could not be validated. |
Neither Visa nor MasterCard shift liability for fraud from the merchant |
Set the “strength” of the filter as follows:
Full. Trigger if a value of N, U, or F is returned.
Medium. Trigger only if a value of N is returned.
To enforce the minimum Visa regulations, set the filter to Medium strength with an action of Reject. This setting rejects N responses, however, so there is no liability benefit.
Buyer Authentication is the only screening tool that promises to shift fraud liability from the merchant. The password used with Verified by Visa and SecureCode is the digital equivalent to a shopper’s handwritten signature.
Make use of Buyer Authentication if your processor and merchant support it. The use of the password protects merchants from some chargebacks when a customer claims not to have authorized the purchase.
Widespread account holder enrollment in Buyer Authentication programs may take some time and depends on the card issuers supporting and marketing the option.