Enhanced Authorization with Square

Square continually innovates to deliver industry-leading authorization rates and secure payment experiences. Through partnerships and cutting-edge protocols, we aim to make payment acceptance seamless, safe, and successful for every business. Below, we’ll highlight three critical tools Square employs to enhance authorization: 3DS Data Only, Capital One Direct Data Share (DDS), and advanced carding protections.

3DS Data Only: Improving Authorizations Behind the Scenes

Square is pioneering the use of 3-Domain Secure (3DS) Data Only to improve authorization rates on card transactions. 3DS Data Only is an information-sharing protocol that enables secure, behind-the-scenes data exchange between Square, card networks, and issuing banks. By offering this as a default, Square drives a notable 220 basis points (bps) improvement in decline rates (See Visa<>Square Case Study). Unlike traditional 3DS flows, 3DS Data Only is invisible to the customer and does not shift chargeback liability, helping improve approval rates without adding friction to the checkout experience. With 3DS Data Only active for all Square payments, sellers benefit from improved payment success and a smooth, secure user experience.

Capital One DDS: Enhanced Authorization with Direct Data Share

Square also leads the market in using Capital One’s Direct Data Share (DDS) protocol, a collaborative solution for optimizing authorizations. For payments involving Capital One cards, this protocol provides Square with a direct line of communication with Capital One prior to authorization, resulting in a 50 bps decline rate improvement. DDS helps ensure higher authorization rates by sharing real-time transaction data, which helps Capital One confirm legitimate purchases faster. This unique integration not only benefits businesses but also enhances the customer experience, as valid transactions are less likely to be declined.

Carding Protections: Keeping Transactions Safe from Fraud

Square also features robust protections against carding fraud. Carding occurs when fraudsters attempt to guess credit card details by making a high volume of low-value payment attempts. To combat this, Square employs Proof of Work (PoW) validation for online checkouts, which imposes computational requirements to deter fraudulent activity. Additionally, Square applies internal risk rules to prevent and block suspected carding attacks from reaching the payment stage. To further enhance security, Square records detailed browser fingerprints for all customers shopping through Square online storefronts, adding another layer of fraud detection to improve the accuracy of carding prevention.

With these advanced tools, Square is raising the bar on payment success rates while keeping fraud at bay. Our focus on proactive security and seamless transactions allows businesses to process payments and protect their customers confidently. The Square Enhanced Authorization solutions work in the background so you can focus on what matters: running and growing your business.