What is Mastercard SecureCode | chargebackhit.com

Mastercard SecureCode


SecureCode, the Mastercard version of 3-D Secure technology, is a familiar tool for merchants seeking enhanced security. It adds an extra layer of authentication for credit card transactions, requiring cardholders to verify their identity through their device.

To utilize SecureCode, both the merchant and the cardholder must enroll in the free service. When cardholders initiate a SecureCode transaction, they provide their Mastercard payment card details. The checkout process then activates SecureCode, sending a unique one-time code via SMS to the cardholder’s phone. The transaction is approved once the code is entered and the checkout process is completed.

By utilizing SMS verification, SecureCode effectively thwarts most card thieves, as they typically lack access to their victims’ phones. This added security measure significantly reduces credit card fraud.

However, this additional step might present a challenge for merchants selling high-value items that require careful consideration. It may lead them to evaluate the trade-off between enhancing security and potentially impacting the customer experience for impulse shoppers. Nevertheless, it’s crucial to remember that the costs and repercussions of chargebacks can far outweigh the impact of a lost sale.

SecureCode is an effective solution for preventing fraud chargebacks on Mastercard-branded cards, but it’s essential to note that only enrolled cardholders are required to use it.

The extent to which SecureCode impacts an individual merchant’s chargeback rate depends on the nature and sources of their chargebacks, which can be better understood through tracking and analyzing chargeback data over time. This approach allows businesses to assess the effectiveness of SecureCode for their specific circumstances.