Library · Payment orchestration · How to run this
Place 3DS only when the tax pays
3DS is a challenge at checkout. Every extra screen costs orders. Fraud chargebacks it actually stops are the save. This page asks whether the weekly tax is smaller than that save on this path. It is not a what-is-3DS explainer, and it is not a reason to challenge every shopper.
Pair: 3DS conversion tax vs fraud save on Payment orchestration. First-try vs step-up fork: pre-auth vs post-auth 3DS. What a successful authentication can shift is a different job: 3-D Secure liability shift. A 3DS fail is not a hop: Soft vs hard decline: next action.
What to type
Orders / week are unique checkouts that hit the 3DS rule on this merchant account. Do not mix in hops that retried onto an account that is not enrolled.
Settled AOV is what actually settled. CRM “paid” is not AOV.
Conversion drop % is this path versus a control that did not show 3DS. Same offer, same week if you can. We do not fill 8%. If you have not measured a drop, you do not have a tax yet.
Fraud chargeback $ saved / week are fraud dollars that 3DS moved on this path — codes where a success actually shifted the case, or fraud that stopped showing up against the control. Type 0 if you measured none. Do not paste all chargebacks. Do not paste not-received.
Conversion tax is orders lost times settled AOV. Net is save minus tax.
Place, do not blanket
A blanket rule taxes returning shoppers and cheap tickets that were never the fraud problem. Place the challenge where the fraud lives.
Amount. High tickets, not the $29 impulse add-on.
BIN. Issuers or bins that already file fraud on this account.
Risk. A score or rule you already run. We do not fill a vendor cutoff.
Measure the drop and the fraud save on that slice. A slice that pays is not permission to flip the rest of the book on.
Attempted or failed 3DS is not a save. A retry onto an account that is not enrolled can undo a shift you already paid for. Do not send the same shopper around every enrolled account to chase the sale.
After the readout
If the tax is bigger, cut 3DS on this slice or narrow the rule. If the save is bigger, keep it on this slice. If they match, you paid conversion to stand still — still place on purpose.
Do not turn 3DS on because a boarding deck said “liability shift.” Do not count an attempted challenge as fraud dollars saved.
Related: Traffic (the drop hits paid landings), Chargebacks (only fraud codes can move), MIDs (enrollment is per account).
Procedure
- Type weekly orders on the authenticating account.
- Type settled AOV, the drop versus a no-3DS control, and fraud dollars 3DS moved.
- If the tax is bigger, cut or narrow. If the save is bigger, keep it on this slice.
- Place on amount, BIN, or risk. Do not challenge every shopper.
Failure modes
- Turning 3DS on for every checkout because of liability shift.
- Pasting an 8% drop you did not measure.
- Counting attempted 3DS or not-received as fraud dollars saved.
- Flipping the rest of the book on because one slice paid.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Conversion tax
- Orders lost because 3DS was shown, times settled AOV. Measured against a control that did not show 3DS.
- Fraud save
- Fraud chargeback dollars 3DS actually moved on this path. Not not-received. Not the whole dispute mix.
Work with us — We run this job on your accounts. Services
FAQ
- Should I turn 3DS on for every checkout because of liability shift?
- No. Shift is for qualifying fraud after a success. The drop on clean shoppers is a tax. Place on amount, BIN, or risk.
- Can I use a typical 8% conversion drop?
- No. Type the drop you measured on this authenticating account versus a control that did not show 3DS.
- Does a fraud-dollar save include not-received chargebacks?
- No. Count fraud codes 3DS actually moved. Not-received and not-as-described stay on you.