With eCommerce on a staggering rise, card-not-present transactions have become the norm. However, when a customer is not making a purchase in person, it becomes more challenging to prove their identity. This leads to fraudulent use of card numbers, chargebacks, and other negative consequences for the merchant as well as the customer whose card number was stolen. Fortunately, the major card issuers have implemented 3D Secure 2.0 services to protect cardholders and online merchants alike. Discover ProtectBuy is one such service, and helps authenticate transactions that appear to be high-risk.

How Discover ProtectBuy works

Discover ProtectBuy utilizes the 3D Secure 2.0 protocol, which compares a large amount of cardholder data to the facts surrounding an online transaction. The customer's buying habits, spending patterns, location, device used, and more are all checked for consistency when making a purchase. All this authentication takes place in the background, without causing friction at checkout. If the data matches, the purchase goes through as normal.

If the data doesn't match, the customer receives a temporary identification code via email which they'll need to enter to complete the transaction. Only about 5% of transactions are considered high-risk and initiate the additional verification. By entering the temporary code, the customer can confirm their identity as the cardholder.

The added safety eCommerce needs

Discover ProtectBuy and other 3D Secure 2.0 services cut down on fraud by ensuring the identity of the customer. Since online credit card fraud hurts both consumers and merchants, the additional security is helpful for eCommerce as a whole. Discover card and Diner's Club card holders are both protected by Discover ProtectBuy when shopping at participating online stores.

As an online business owner, you'll be relieved to know that with Discover ProtectBuy you'll experience a reduction in chargebacks and fraudulent purchases, and an increase in your customers' trust in shopping with you. You'll reduce costs, cut down on losses, and both you and your customers will benefit.