CVV Card Verification Value vs 3-D Secure, D365, Dynamics Ax

What’s the difference between Card Verification Value verification and 3-D Secure cardholder authentication? How can each be used in Microsoft D365 F&O or Dynamics AX 2012? Both are solutions to reduce chargeback risk for card not present transactions, but not much else is the same.

The CVV, or Card Verification Value, is a three or four-digit number on credit cards to add an extra layer of security for phone and online purchases to help protect against identity theft. CVV or CSC, or Card Security Code, and CVV2 have the same purpose. The “2” means it was created using a newer process to make the number more difficult to guess.

3-D Secure is a protocol providing an additional layer of security for eCommerce transactions prior to authorization. 3-D secure 1.0 is being retired October 1, 2021 and legacy integrations often require an update.

What are merchant benefits for using 3-D Secure vs CVV?

  • More authorization approvals. False declines are a significant source of lost revenue.
  • Some cards have reduced interchange rates when the authentication is invoked, which are usually over 90% of fees.
  • Less friction for customers at checkout because it’s more likely to get approved and no need to chat or call for help.
  • Reduced risk of chargeback losses. Fraud liability for “it wasn’t me” automatically shifts to the issuer; Merchants do not have to defend those chargebacks, they never even see them.

At this stage of massive data breaches and stolen data globally, the CVV is just not enough to mitigate chargeback risk because too many compromised cards with CVV data are available on the dark web. Additionally, merchants can experience issuer generated chargebacks even if an authorization was granted. What? Yes, and there is no recourse. A big issue is following authorization rules. Here’s some examples:

  1. A merchant has customer card numbers on file (old school on paper). The merchant key enters each transaction. This fails the unscheduled credential on file rule, where after the initial authorization, a response code is submitted with each subsequent authorization.
  2. A merchant has customer card numbers on file via stored tokens, no access to cardholder data. The merchant uses token to get new authorizations. This can fail the unscheduled credential on file rule, where after the initial authorization, a response code is required with each subsequent authorization, however, the technology used does not support those protocols.
  3. A merchant gets a phone order and enters CVV. The merchant has higher risk of fraud because the customer must self-enter the card number to participate in 3-D Secure authentication.

If you have non-qualified, STD, and other classes of transactions on merchant statements, that usually means that an authorization rule was not followed. So while an authorization code may have been granted, the merchant is at higher risk of a chargeback and usually pays penalty fees.

How can Microsoft D365 and Dynamics AX users leverage the benefits of 3-D Secure 2.0 vs CVV verification? For B2B, I recommend all merchants require their customers self-manage their payment methods using a payment gateway that supports all the latest authorization rules. (Few do.) For cards that have been stored over multiple years, it’s unlikely that the token stored has the correct data (not visible to merchants) to send with newer transactions. For example, Authorize.net, a popular payment gateway, just started supporting unscheduled credential on file this year, and only on First Data. Ask about our integrated and standalone solutions that include a cloud portal for customers to self-manage payment methods, view payment history, and pay invoices, if applicable.

What payment gateways support customers self-managing payment methods in compliance with all the current rules? Contact us for stand alone, Dynamics integrated, Magento and other solutions. Remember, 3-D secure can only be invoked if the customer entered their cardholder data. For subsequent unscheduled credential on file transactions, CVV and 3-D secure are not needed, because the cardholder has already verified themselves.

Call Christine Speedy, PCI Council Qualified Integrator Reseller (QIR) certified, for all your card not present, Microsoft Dynamics AX and D365 payment processing needs from ACH to credit cards and more. Get a new merchant account or keep your existing. 954-942-0483, 9-5 ET.

Microsoft Dynamics D365 F&O Credit Card Processing Solution

Looking for a D365 F&O credit card processing solution? Very few check all the boxes. There are different nuances to each and a big consideration should also be the level of customization that is needed. How much work is needed to get the module live and continually updated?

Our D365 F&O credit card processing solution minimizes the need for customization and is light to implement, creating opportunities to save tons of money on consulting, development, and updates. Users receive a deployable package and continual updates to work with all D365 updates.

Built based on years of experience with ERP payment processing and especially the needs of B2B manufacturers and distributors, including omnichannel, here’s a few examples:

  • Supports RETAIL, MOTO and ecommerce. Yes, that’s retail transactions within F&O, not D365 Retail.
  • Retail accepts EMV chip, checks and cash.
  • Retail Level 3 processing reduces B2B costs.
  • Prepay on sales authorization.
  • Split payments among multiple payment methods.
  • Stored card and ACH info- tokenized, never visible.
  • Automated daily batching.
  • Automated journal updates.
  • Payment object resides outside of the ERP environment for reduced PCI scope.
  • Optional validated P2PE.
  • Automated compliance with authorization and stored credential rules.
  • Optimization for least cost processing any given transaction.
  • Compliant with rental and loaner special processing requirements.

Call Christine Speedy, PCI Council QIR certified, for all your Microsoft Dynamics AX and D365 payment processing needs from ACH to credit cards and more. Get a new merchant account or keep your existing. 954-942-0483, 9-5 ET.

Payment Services for Microsoft Dynamics

Accept debit and credit cards directly from Microsoft Dynamics AX, now Dynamics 365, and other payment types. An alternative to Microsoft Payment Services, which is end of life December 31, 2017, offers many new features and benefits, including more payment types.

Your customers don’t pay just with credit and debit cards, so why limit their options? The new alternative payment services for Microsoft Dynamics® ERP supports debit and credit cards, ACH and check, cash, wire, and Paypal, depending on the sales channel. With native integration into Dynamics AX 2012 R3, increase efficiencies without ever leaving your AX screen, while also minimizing PCI scope and burden.

FEATURES:

  • Process authorizations, payments and credits in Accounts Receivable:
    • Sales Pickup – Will call, partial order as well as full delivery
    • Journal Entry for Project
    • Free Text Invoices
    • Return Orders
    • Credits, partial credits
    • Sales Orders – Cash and carry
  • Authorize, capture, refund, reverse and more options for credit card payments with Visa, American Express, MasterCard, Discover, etc.
  • Universally compatible with your financial partners including First Data, Chase Paymentech, Moneris, Tsys, Global, and many others in USA and globally.
  • Point to Point Encryption (P2PE) all sales channels, including Virtual Encrypted Keypad for staff key-entered transactions.
  • Tokenization for ACH and credit card recurring transactions, including installment, variable installment, unscheduled stored on file and fixed recurring.
  • EMV chip and pin (yes, both!); certifications may vary by acquirer.
  • 3-D Secure Verified by Visa, MasterCard Secure Code and American Express Safekey; certifications may vary by acquirer.

BENEFITS:

  • Increase approvals and profits with 3-D Secure for card absent customer payments.
  • Increase approvals and profits with EMV for retail customer payments.
  • Increase cash flow and improve customer experience with Electronic Bill Presentment and Payment, including customer portal to view and pay invoices.
  • Tighter financial controls with all payment types and all sales channels supported in one integration, even third party shopping carts.
  • Reduced PCI Compliance burden with payments segregated from applications; Links for you to validate Level 1 PCI Compliance, QIR, Visa Global Registry etc.
  • Compliance automation, including with the plethora of new card acceptance rules related to authorization validity and stored card authorization acceptance.


Christine Speedy, CenPOS global sales and integrated solutions, 954-942-0483. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement.
CenPOS automates complex payment processing, creating efficiencies through innovation.