Could you introduce the idea of a pre approval process?
For example, if you regularly shopped online at Asda or you regularly made payments to Google Play, rather than having to approve each time, you could just choose to pre approve all transactions from a specific retailer.
But, Amex has a system which allows you to do this. You can add retailers to your safe list or something when you check out and get asked for 3DS/2 factor approval. Disclosure - I’ve never actually done it but my understanding is you would then never be asked to confirm with that retailer again.
So (purely academic point) but maybe something could be implemented at the MasterCard level, if not the Monzo one?
Although some transaction types have to always go through 3DS, this isn’t the case for most transaction types.
It has been mentioned on the forum a few times that Monzo have, and are improving, processes to automatically let through transactions that have a low risk of fraud. Here’s an example:
They also seem to be working with some companies (e.g., Amazon) to approve transactions automatically - my guess would be that Amazon sends some sort of account identifier through with the transaction info so Monzo can check if that Amazon account has been used to buy stuff before.
As far as I understand the liability stuff, these are the options:
Merchant requests 3DS approval ==> Monzo choose to automatically approve it (without 3DS) ==> Monzo liable if transaction is fraud.
Merchant requests 3DS approval ==> Monzo requires 3DS from customer ==> Merchant is liable (not 100% about this - it may depend on the circumstances). Monzo is liable in this case (thanks @arthur-ceccotti).
Merchant does not request 3DS approval ==> Monzo wouldn’t require 3DS from customer ==> Merchant is liable (I think with 3DS2 all online merchants have to require 3DS, but maybe that’s only for EU(/UK)-based merchants or something).
Yes and no. Right now we can only challenge you (ie. request that “pre-approval”) if the merchant asks for it first. As of September Monzo can decline ecommerce transactions that did not go through 3DS, thus forcing merchants to request it. Got it?