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How Do 3-D Secure Links Help Reduce Chargebacks and Fraud?

How-Do-3-D-Secure-Links-Help-Reduce-Chargebacks-and-Fraud- Zeevou

As a property manager, you deal with many operational issues to create a memorable guest experience with a safe and secure stay. However, the secure guest journey starts earlier when it’s time to make an online reservation and payment, which could be subject to fraud. As such, you need to manage online payments with extra care by using fraud prevention measures, including 3-D Secure Links.

Collecting payments and security deposits through other safer ways, such as bank transfers, is not always feasible. Also, taking cash or using chip-pin machines at the time of guests’ arrival need extra resources like on-site check-in staff. So, implementing 3-D Secure Links seems to be the best technique to protect your bookings from chargebacks and phishing.

Highly Secured Guests' Credit Card Authorisation- Zeevou
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Highly-Secured Guests’ Credit Card Authorisation

When making an online payment, the 3-D Secure technology determines if further safeguarding is required to authenticate the card owner. Thus, using 3-D Secure links entails a decrease in contested or fraudulent transactions, leading to a lower chance of chargebacks. This also reassures guests that their personal financial and payment information is protected when they finish a remote payment. 

A 3-D Secure transaction begins with a payment processor redirecting the guest to a payment gateway. Then, the process of authentication initiates.

The authentication mechanism is based on a three-domain model in which three parties are involved. The first domain is the card issuer. The second party is the merchant receiving the payment. And the 3-D Secure infrastructure platform, which serves as a secure intermediary between the cardholder and the merchant, is the third domain.

After the guest is led to the secure page, the authentication aspect of 3-D Secure can function in one of two ways:

  1. The guest is asked to provide a password that they had already established with their bank.
  2. The guest is asked to provide a one-time PIN sent to their cell phone through SMS.

If the information is accurate, the guest is returned to the booking’s payment interface. When the information is incorrect, the authentication will fail, and the issuing bank will prevent the payment from proceeding for security reasons.

Afterwards, the acquiring bank receives the outcome of the 3-D Secure authentication as well as transaction data. Then, the acquirer authorises the transaction, and the guest can observe whether the payment was successful or failed.

No Concern about Chargebacks Liability

Although the 3-D Secure Links give an added level of payment protection, it doesn’t necessarily eliminate chargebacks. But having it in place minimises the number of contested transactions for the property owner. How?

When transactions are confirmed, the liability for fraudulent activities passes from the merchant to the card issuer, making your business significantly less vulnerable to chargebacks.

Therefore,  you’ll save time and money by having fewer customer settlement issues.

Manage Your Bookings with Peace of Mind by 3-D Secure Payment Links- Zeevou
Designed by Freepik

3-D Secure Links improve payment security for guests and hosts alike. Hence, you may enable this additional layer of high-tech security to have maximum protection for your short-term rental bookings.

Regarding this, a Property Management System (PMS) could be a proper facilitator for secure booking and security deposit payments. For instance, Zeevou has provided an automated Booking Confirmation Process through which you can apply 3-D Secure Links.

Applying 3-D Secure checks through Zeevou is easy as the PMS integrates with several payment portals, such as Stripe, Worldpay, and Fist Data. These payment gateways support 3-D Secure technology and allow you to accept payments in a stable infrastructure. 

In addition, the option of using 3-D Secure Links is customisable at Zeevou. So, you are free to whether activate or deactivate this step in some or all of your rentals’ booking confirmation processes.

Undoubtedly, enabling the 3-D Secure Payment Links is a must for every vacation rental business of any scale. But our article will remain incomplete if we don’t talk about some possible pitfalls of 3-D Secure technology. 

Delay in the Payment Process

The authorisation procedure may take some time and keep your guests on hold while on a booking process. Therefore, some guests might find it disappointing and simply give up booking with you.

It Might Seem a Fraud

Sometimes, it’s difficult for some users to identify if a 3-D Secure pop-up is real. Since the authentication can take away guests from the payment site, this may be confused with phishing scams.

Not All Credit Cards Support 3-D Secure Technology

Major debit and credit card companies use 3-D Secure Links. However, not all credit cards are enrolled in the 3-D Secure scheme. So, it might affect the number of guests who can book with you.

The Matter of Releasing the Security Deposit

Any guest wishes to receive the security deposit as soon as they leave the property. Realising deposits through gateways using 3-D checks should not be a problem. Yet, it is possible for the system to discharge the money with some delay.

The Benefits of Using 3-D Secure Payment Links- Zeevou
Designed by Freepik

With 3-D Secure Links in place, the possibility of criminal behaviours and overall chargeback ratio is efficiently reduced. Like for other parts of your rental operations, your PMS can have a significant role in providing a solid booking process, including a safe and secure reservation payment and financial solutions.

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