What is 3D Secure?

1. What is 3D Secure for guest checkout transactions?

3D-Secure ("3DS”) is a secure authentication protocol designed to ensure enhanced security and strong authentication by requiring buyers paying for online purchases with debit or credit cards to undergo additional verification steps. This adds an extra layer of security to online credit and debit card transactions for both you and the buyer.

With effect from 26/06/23, Hong Kong sellers using our Standard Checkout integration will have the option to enable 3DS authentication for credit and debit card transactions made by buyers without a PayPal account (i.e., "guest checkout transactions” as referred to in this FAQ).

2. How does 3D Secure work?

When 3DS is enabled, buyers will be redirected to a 3DS authentication page hosted by their card issuer after entering their card information on PayPal’s guest checkout interface. There, they will be requested to pass an additional 2-factor authentication process, before their payment may be successfully processed or completed.

Please note that in a small number of scenarios, transactions may still be processed without 3DS authentication, even if you have enabled 3DS for your guest checkout transactions. This is primarily limited to instances where certain card issuers in certain markets or jurisdictions do not support 3DS. In any event, the 3DS challenge will still be raised. You may contact PayPal via Merchant Technical Support / your designated sales support / customer service contact for more details.

3. How can I enable 3D Secure for my guest checkout transactions?

Please contact PayPal via Merchant Technical Support or your sales customer service contact to enable 3DS authentication for guest checkout transactions. Our teams will work with you on the next steps to enable this functionality. This process may take a few weeks.

4. Will there be any fees for enabling 3D Secure for guest checkout transactions?

There won’t be any additional charges for enabling 3DS authentication for guest checkout transactions.

5. What else should I take note of before enabling 3D Secure for guest checkout transactions?

As 3DS introduces an additional step in a buyer’s checkout flow (see details in Q2), it is possible that enabling 3DS authentication could impact your conversion rates.

However, it is worth balancing this against the security benefits of 3DS for both buyers and sellers, including the potential to reduce the impact of fraudulent chargebacks.

6. Would the process for raising a dispute change if I enable 3D Secure for guest checkout transactions?

The dispute process will remain unchanged. For more information on disputes, please see our disputes FAQs.

7. Can individual accounts enable this feature?

This feature is available only for PayPal business accounts. If you wish to enable this feature, you may consider converting to a PayPal business account. You can subsequently request enabling 3DS authentication for guest checkout transactions (please refer to Q3 for guidance).