There are many reasons as to why credit card payments can fail, for instance, when the credit card limit has been reached, a poor network causes the payment not to pass through, or the wrong credit card credentials are being entered.

For your best interest and to protect you from fraud, we recommend you to enable Dynamic 3D Secure to help you distinguish fraudsters from customers. If a customer’s credit card does not support Dynamic 3D Secure verification, they may not be able to complete the credit card authentication nor the transaction.

More about Stripe's Dynamic 3D Secure verification https://stripe.com/en-hk/radar

What is Dynamic 3D Secure verification?

Dynamic 3D Secure verification is a network security verification service launched by international credit card companies such as Visa and MasterCard. It is used to detect and block fraud, and protect those who are using credit cards legitimately.

Customers can choose to either use their preset password (static password), or a one-time verification code (dynamic password/message OTP) sent to their mobile phone to complete their credit card transactions.

If a customer opts to receive the password on his/her mobile phone, the verification code will be sent to the mobile phone number registered under the credit card account. In addition to that, some banks will also send an email to the card holder to confirm the recent transaction.

What are the benefits of Dynamic 3D Secure verification?

If Dynamic 3D Secure verification is enabled, when a customer uses a credit card to pay for an order, they will be required to enter a password corresponding to their credit card in order to complete the transaction. Therefore in the case of a fraud, the responsibility will usually lie on the customer who will bear the loss resulting from the fraud.

On the contrary, if Dynamic 3D Secure verification is not enabled, in the case of a fraud, the customer will have the right to ask the bank to cancel the transaction and refund the money.

Therefore, when the third-party payment platform claims the money which is to be refunded to the customer for the cancelled transaction, you as the receiving party will have to bear the loss arising from the fraud.

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