3D Secure Exemptions Rate KPI

3D Secure Exemptions Rate

3D Secure exemption rates indicate the percentage of transactions that are successfully processed without triggering 3D Secure authentication, based on specific regulatory exemptions allowed under PSD2 (Payment Services Directive 2). These exemptions are designed to streamline the customer experience by reducing unnecessary friction while maintaining strong fraud prevention.

Common types of exemptions include:

• Low-value exemptions: For transactions under €30.
• Transaction Risk Analysis (TRA): For transactions deemed low-risk based on the fraud rate of the acquirer or issuer.
• Recurring payments: After the initial authentication, subsequent payments can often be exempted.
• Trusted beneficiaries: When the customer has whitelisted the merchant with their bank.
• Corporate payments: Made with a secure, dedicated business card.

A higher exemption rate typically translates to a smoother checkout experience, as fewer customers are asked to verify their identity through passwords, biometrics, or one-time codes. However, exemptions aren’t guaranteed—issuers have the final say and can still challenge a transaction by requesting authentication if they detect a risk.