What Is 3D Secure and Why Should Your Dealership Use It?

Modified on Wed, Apr 22 at 1:36 PM

3D Secure is an extra identity verification step that protects your dealership when customers pay remotely. This article explains what it is, why it matters for chargebacks, and when to use it.

What Is 3D Secure?

3D Secure is a security step built into online and remote card payments. When a customer pays through a DealerWorks payment request, their bank asks them to confirm their identity before the charge goes through — usually by approving the payment in their banking app, entering a one-time code sent to their phone, or completing a similar verification step.

The customer may see it branded as "Verified by Visa," "Mastercard Identity Check," or simply as a prompt from their banking app asking them to approve the payment. From the dealership's perspective, the process is the same regardless of what the customer's bank calls it.

Why It Matters for Chargebacks

When a customer's physical card is not present — such as when payment is taken over the phone — the dealership normally carries more responsibility if the customer later claims the charge was unauthorized. Without any additional verification, these disputes are difficult to win because there is no chip read, tap, or signature on file.

3D Secure changes this. When a customer completes the verification step, their bank has confirmed who they are. If they later file a fraud or unauthorized charge dispute, the bank — not the dealership — is generally responsible for the outcome. This is called a liability shift.

What Liability Shift Means in Practice

When 3D Secure is completed successfully, a fraud chargeback on that transaction becomes significantly harder for the customer to win. The bank verified the customer's identity before the charge went through — so the customer's own bank is holding the responsibility. This does not guarantee you will win every dispute, but it substantially strengthens your position on fraud claims.

How to Use It at Your Dealership

Instead of asking a customer to read you their card number over the phone, send them a payment request through DealerWorks. The customer receives a link, completes the payment on their own device, and the 3D Secure verification happens automatically as part of that process.

Payment Request

Recommended for any remote payment

You send the customer a payment link directly from DealerWorks. The customer opens the link on their phone or computer, reviews the amount, and pays using their card. Their bank performs the 3D Secure verification as part of the checkout. You receive confirmation once the payment is complete.

Best for: Remote deposits, phone-in customers, payment collection after vehicle pickup, any situation where the customer cannot come in to pay in person.

Manual Card Entry

No 3D Secure — use only when a payment request is not an option

Taking a card number over the phone and entering it manually does not include 3D Secure. If the customer later disputes the charge as unauthorized, the dealership has no identity verification on file to reference.

Whenever possible, use a payment request instead. Manual card entry should be a last resort, not a routine practice.

When to Use a Payment Request

Any time a customer cannot physically tap or chip their card at your terminal, a payment request is the right choice. Common situations include:

A customer calls in to pay for a service or parts order.
A customer is picking up their vehicle but wants to pay in advance.
You need to collect a deposit before work begins and the customer isn't coming in.
A customer wants to pay after receiving an emailed invoice.
A fleet or corporate account is paying remotely for work done on their vehicle.

3D Secure Doesn't Cover Every Dispute Type

3D Secure specifically addresses fraud and unauthorized charge claims. It does not protect against disputes about service quality, cancelled work, or refunds not received. For those, the dealership still needs strong documentation — signed repair orders, technician notes, and clear refund records. See Chargeback Reason Codes: What They Mean and How to Respond for a full breakdown.