Although 3D Secure looks like an ideal solution for merchants, it is not. There are many circumstances when 3D Secure may fail. Seven notable 3D Secure failure reasons are reported below.
Cumulatively, 3D Secure failures reduce the conversion
Taken cumulatively, these failures hurt payment conversion and reduce revenue opportunities for merchants. This is why some merchants with a limited payment risk have decided to forego two-factor authentication.
|1||Authentication system is down.|
|2||Bank has not yet implemented 3D Secure.|
|3||Card is not 3D Secure enabled.|
|4||Challenge sends an SMS but buyer does not have the phone nearby.|
|5||Code is sent to an incorrect phone number.|
|6||Phone is turned off.|
|7||Phone does not have a signal, e.g., in a basement or abroad.|