3-D Secure Data Share Only

Square | Arcot Pilot Results

Square was experiencing higher false declines than expected for Card Not Present (CNP) transactions in the U.S. market which led to negative shopper experiences across many Square sellers.

Results from the Arcot | Square partnership:

• Authorization Rates improved in the hundreds of basis points on some issuers (+646 bps) 
• 3DS Authentication Success Rates Improved by 19%
• Chargeback rates improved by 6%

Download the Arcot | Square case study

By sharing consistent, meaningful data via frictionless EMV 3DS, merchants see measurable gains in authentication and authorization rates, customer experience, all without higher fraud exposure.

Data-Only: A Specific Implementation of the 3DS 2.0 Protocol that Bridges the Gap Between Merchants and Issuers

• Rich Data Exchange: Arcot enables the transmission of hundreds of data points from the merchant to the issuer in the background during the checkout process. These include device IDs, behavioral biometrics, shipping vs. billing, account age, and more.
• Frictionless Authentication: The customer never sees a pop-up, never enters an OTP, and never experiences a delay. Data Share Only (DSO) flows guarantee a frictionless cardholder journey. In fact, DSO Flows cannot be challenged by the issuer, a rule which is a 3DS protocol definition and enforced by the fundamental design of 3DS.
• Real-Time Decisioning: Arcot's ability to analyze data in milliseconds during the transaction flow provides a high-confidence risk score. This allows issuers to approve a transaction they might have otherwise flagged as suspicious.

Matt Cooke, Arcot’s Vice President and General Manager, shares what happens when merchants and issuers align on data and decisioning.

Merchants Unlock Rich Data Exchange With Over 5,500+ Issuers: The Power of The Arcot Network

Merchants who exchange data with Arcot Issuers reduce customer friction, eliminate false positives, and maximize authorization rates and authentication success rates, all without compromising security.

• Authorization Approval Rates: Huge gains often in terms of whole percentage points (hundreds of basis points)
• Merchants Retain Control of The Cardholder Journey: No friction to the cardholder
• Merchants and Issuers Bridge the Divide: EMV 3DS metadata sharing enables merchants and issuers to collaborate in preventing fraud, maximizing approval rates, and improving the customer journey.

Watch the video

James Jenkins, Arcot’s Head of Customer Development, shares what happens when merchants exchange meaningful data via 3DS Data-Only and Acquirer TRA. 

Implementing 3DS Data-Only: A Practical Guide for Merchants and Issuers

• The merchant submits a full 3DS request without requiring a cardholder challenge. The transaction passes through the Directory Server and Access Control Server (ACS), and the resulting dataset is carried into the issuer's authorization stream. 
• The Requester Challenge Indicator (RCI) Code guides how the ACS should treat the transaction. Merchants send an RCI06 for low-risk transactions (as determined by the merchant or Payment Service Provider (PSP)) for Data-Only transactions. 
• Merchants can use Data Share Only to forgo liability shift on low risk transactions in exchange for a guaranteed frictionless cardholder journey, reducing risk of abandonment and maximizing authorization approval rates.

Download the 3DS Data-Only implementation guide

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