Understanding the Impacts of Consumer Authentication on Approved Transactions

3D Secure was designed to add an authentication layer for online payments -- 3DS works by redirecting cardholders of specific cards to an authentication page for the card issuer, prompting the cardholder to authenticate himself/herself. Merchants can have increased confidence with authenticated transactions as the fraud risk is generally lower, though for consumers this can add a layer of friction and lead to purchase abandonment.

CardinalCommerce and Chargelytics Consulting studied the impact that CardinalCommerce's Cardinal Consumer Authentication (CCA) product had on the rate of transactions Amtrak approved. Their case study showed that using a rules-based approach for 3D Secure increased Amtrak's overall authorization rates as well as the rate of approved transactions.