Both Chargeback Protection and Seller Protection help protect against fraudulent and unauthorised transactions. Seller Protection is available for eligible PayPal Payments transactions. PayPal Payments is an all-in-one checkout solution that lets you offer PayPal and Pay Later options to your customers. Chargeback Protection is available for eligible credit and debit card transactions.

They both offer the benefits of PayPal fraud detection and risk management for credit and debit card transactions, but you can use only one of the services at a time. While there’s no additional cost for Fraud Protection, you’ll be responsible for any chargebacks and associated fees. Chargeback Protection collects a small fee per eligible credit and debit card transaction to add protection on eligible chargebacks.⁴

On eligible disputes, Seller Protection and Chargeback Protection put a temporary hold on transaction funds, but they never leave your merchant account. Upon receiving required documentation, the hold is released and the funds are once again available in your account.⁴

3D Secure is the secure protocol designed to ensure enhanced security and strong authentication when you use your debit or credit cards for online purchases. It may also be referred to – depending on the network – as Mastercard ID Check, Verified by Visa, or American Express SafeKey. 3D Secure allows card issuers to complete either frictionless authentication of the cardholders, or request a challenge (or two-factor authentication) to verify their identity or meet their compliance requirements. The method by which the banks verify customer identity (for example, an SMS One-time password or biometric authentication) is determined by them and established with their cardholder.

We recommend that merchants located in UK and the European Union use 3D Secure to ensure compliance with PSD2 and Strong Customer Authentication (SCA) requirements. 3D Secure is the industry-standard cardholder authentication protocol and allows card issuers to meet their SCA / Two-Factor Authentication obligations.

• Help Increase security: 3D Secure adds an extra layer of security to online transactions by requiring cardholders to authenticate themselves using a password or biometric information. This helps reduce the risk of unauthorised transactions and chargebacks, protecting both the business and the customer.
• Help reduce fraud liability: By using 3D Secure, businesses may shift the liability for certain types of chargebacks related to fraudulent transactions to the card issuer. This can help protect businesses from financial losses due to fraudulent activities.
• Compliance: Cardholder authentication is mandated in several regions, and 3D Secure helps card issuers to meet these requirements.

PayPal offers the latest 3DS solution for you and your buyers. For more information please visit the Developer Docs or contact sales.