Mastering 3D-Secure: Minimizing chargebacks and fraud rates for payment gateways, PSPs and PayFacs

Visa's new changes to the Acquirer Monitoring Program (VAMP), effective April 2025, significantly impact high-risk merchants by including previously excluded resolved disputes from Rapid Dispute Resolution (RDR) and Cardholder Dispute Resolution Network (CDRN) into overall fraud rate calculations. This shift necessitates that high-risk merchants, often dealing with high dispute rates due to the nature of their industries such as gambling and digital goods, adapt their strategies beyond traditional chargeback management. 3D-Secure (3DS), a protocol designed to add an extra security layer for online transactions, becomes critical in managing fraud rates as it shifts liability from merchants to card-issuing banks upon successful authentication, thus reducing TC40 fraud reports that contribute to VAMP calculations. The implementation of 3DS is crucial for payment service providers (PSPs) to help merchants stay under the new fraud thresholds while maintaining conversion rates. The advisory period until October 2025 offers a grace period without penalties, but high-risk merchants must adopt comprehensive fraud prevention tools like 3DS to navigate the evolving compliance landscape successfully.

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