Merchant Initiated Authentication (3RI) and 3DS

Merchant-initiated authentication, or 3RI, is a 3D Secure 2.2 capability that lets authorized merchants charge a customer’s card for future card-not-present transactions without requiring the customer to participate each time. It supports business models involving recurring subscriptions, installment or buy-now-pay-later payments, split shipments, and refund reversals when returned goods are not received or are unsuitable. While traditional in-store retailers generally have less need for 3RI, it is particularly important for travel agencies, e-commerce sellers, rental companies, hotels, restaurants, and other businesses where payments may occur over time or final charges are not known at the initial authorization. As part of the broader 3D Secure fraud-prevention protocol, properly completed authentication can also shift fraud liability from merchants to card issuers, although the customer verification process may sometimes add friction or confusion during checkout.

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