Understand Enhanced Security
About Enhanced Security
Enhanced Security is available for Cash Local storefronts, Orders Online storefronts, and Square Invoices to protect your business from fraudulent transactions. Enhanced Security uses 3D Secure technology to seamlessly verify your customers’ identities during checkout, helping to prevent fraud-related disputes before they happen.
Enhanced Security is available for online payment products because online transactions face higher fraud risks than in-person transactions. Invoices sellers are automatically enrolled. You can manage this setting when editing an invoice. Select the shield icon next to the card payment option to turn Enhanced Security on or off.
Before you begin
Enhanced Security is automatically turned on for Cash Local, Orders Online, and Invoices sellers.
This feature is provided at no additional cost and is automatically turned on for your account.
Learn how to Use 3D Secure with Square Risk Manager.
For more information about payment security, visit Square's Security Center.
Understand Enhanced Security
When a customer makes a purchase through Cash Local storefront, Orders Online storefront, or pays a Square Invoice of a seller with a service-based business (such as professional services, contractors, cleaning, and similar categories):
Square's risk assessment system evaluates the transaction for potential fraud indicators.
Most transactions proceed normally with no additional steps.
For suspicious transactions, the buyer is prompted to complete two-factor authentication through 3D Secure.
Transactions that fail verification are automatically declined.
Successfully verified transactions receive additional protection against fraud-related disputes.
For Invoices specifically, verification is more likely to trigger when a buyer pays a larger invoice with a card that is new to the seller's account.
Dispute liability shift benefit for verified transactions
One of the most significant benefits of Enhanced Security is the liability shift that occurs with successfully verified transactions:
When a buyer completes 3D Secure verification, the liability for fraud-related disputes shifts from you (the seller) to the card issuer. This means if a verified transaction later results in a fraud-related dispute, you are protected from any financial liability.
The liability shift applies specifically to disputes where a customer claims they didn't authorize the transaction and occurs automatically for all successfully verified transactions.
This protection can save your business from significant financial losses and the administrative burden of dispute management.
Additional benefits and risks of Enhanced Security
While there are a lot of benefits to using Enhanced Security, you want to make sure it’s the right thing for your business. Here are some benefits and risks:
- Reduces fraud risk: Prevents transactions with stolen credit card information.
- Dispute liability protection: Shifts fraud liability from your business to card issuers for verified transactions.
- Saves time and money: Helps avoid the hassle and financial loss of dealing with chargebacks.
- Automatic protection: Works behind the scenes with no action required from you.
- Focuses on suspicious transactions only: Most legitimate customers won’t notice any difference.
If you choose to disable Enhanced Security on your account:
- All transactions will be processed without additional verification, even suspicious ones.
- You will be fully responsible for all fraud-related disputes and chargebacks. You lose the liability shift benefit that protects you financially.
- You may experience increased fraud attempts as fraudsters often target businesses with fewer security measures.
Disclaimer: Although this tool is designed to help prevent payment disputes, the risk of a payment dispute is present with all card payments. Sellers will continue to be liable for all payments they accept and the disputes they receive. Square is not assuming liability for payments, regardless of the risk evaluation that is delivered.