Discover ProtectBuy utilizes the 3D Secure 2.0 protocol, which compares a large amount of cardholder data to the facts surrounding an online transaction. The customer's buying habits, spending patterns, location, device used, and more are all checked for consistency when making a purchase. All this authentication takes place in the background, without causing friction at checkout. If the data matches, the purchase goes through as normal.
If the data doesn't match, the customer receives a temporary identification code via email which they'll need to enter to complete the transaction. Only about 5% of transactions are considered high-risk and initiate the additional verification. By entering the temporary code, the customer can confirm their identity as the cardholder.
Discover ProtectBuy and other 3D Secure 2.0 services cut down on fraud by ensuring the identity of the customer. Since online credit card fraud hurts both consumers and merchants, the additional security is helpful for eCommerce as a whole. Discover card and Diner's Club card holders are both protected by Discover ProtectBuy when shopping at participating online stores.
As an online business owner, you'll be relieved to know that with Discover ProtectBuy you'll experience a reduction in chargebacks and fraudulent purchases, and an increase in your customers' trust in shopping with you. You'll reduce costs, cut down on losses, and both you and your customers will benefit.