On September 14, 2019, new requirements known as Strong Customer Authentication (SCA) were introduced to increase the security of electronic payments. These requirements apply to transactions where both the business and the cardholders bank are located in the European Economic Area (EEA)
The EEA is comprised of: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Iceland, Liechtenstein, and Norway.
SCA ensures that electronic payments are performed with multi-factor authentication. The authentication relies on 3D Secure that is a standard supported by the vast majority of European cards
This article provides details of each part of the system which requires the 3D Secure. Currently, Cloudbeds only supports 3D Secure feature through the latest version of Stripe. Follow the instructions in this article to update your Stripe connection if needed.
Check out the most frequently asked questions about 3D Secure: 3D Secure - Frequently Asked Questions
Cards processed on mybookings booking engine
- When your guest fill out the billing details with a card that requires 3D Secure, extra authentication steps will be required
- The guest needs to confirm the payment - Depending on the institution (bank), different kind of authentication could be requested (fingerprint, passwords, SMS Code, etc) to confirm the payment.
- As these are actions performed by a third-party, Cloudbeds cannot control it.
- In case your guests have any issues during these steps above, they need to contact the bank to get more details on why it happened.
- If the authentication is successful, the reservation will be created
- If it is denied/failed, the reservation will be created with the Canceled Status.
Cards added manually to myfrontdesk reservations or received from OTAs
Step 1. When there is a request for the card to be stored, authorized or charged for the first time and there's a 3D Secure verification, the system will trigger an email to the main guest.
Cloudbeds will send out 3 different emails based on the use case:
- Authentication request email → when myfrontdesk is storing the card
- Authorization request email → when myfrontdesk is authorizing the card
- Payment request email → when myfrontdesk is charging the card
Notes about automatic emails:
- Please note that it's not possible to send emails to other guests on reservations except the main guest
- Emails cannot be edited like a custom template
- Emails are automatically triggered and it's not possible to choose which email is sent - This is decided by myfrontdesk and Payment Gateway logic
- Both property and the guest receive a confirmation of authentication, authorization or payment when they approve or decline.
- Payment and Authorization request emails contain information about the reservation amount.
- Authentication email (when card is being stored) does not contain any information about the reservation amount
Step 2. When the credit card is stored, the main guest will receive an email to approve/decline the transaction
Step 3. If the guest clicks to Approve, they will be redirected to their bank’s page to perform authentication (e.g. password, fingerprint, token, SMS Code, etc.)
Step 4. If the authentication was approved, the guest will be redirected to a thank you page.
- The guest may approve or decline the request. Both guest and the property staff will receive an email confirmation notifying them about it.
- After the guest has approved the first request, consequent transactions for most cards won’t require 3D Secure authentication
- Some cards will need to be authenticated for every transaction (this is decided by the card’s bank). In this case, Cloudbeds sends an email for each transaction.
If the guest declines, they will be redirected to a page that tells them to contact the property.
You can resend the emails from the 'Email Messages' tab inside the reservation (1) or from Email Delivery Log tab (2) when needed.
Step 4. When a payment request is sent to the guest, a Pending Payment is added to the reservation folio.
If the reservation is Canceled or No show, then the Pending Payment will be removed and the link to it in the email will expire.
Pending payments can't be automatically allocated even if the Payment Allocation box is checked. In this case, the payment need to be allocated after the payment is posted (authenticated by the guest) on the guest's folio.
Please refer to this article to learn how to allocate the payment: Allocation of already posted transactions on the folio
Canceling the request
When the property or the guest cancels the request and the guest tries to click on the link again, they can not approve/deny the request anymore and the following error will be displayed:
Pending guest authentication
If you add a new payment using the credit card which already has a pending guest authentication, the following warning message will be displayed
It's recommended to wait until guest authenticates or cancel the pending payment in the folio before adding additional payments.
Cards received in OTA reservations (scheduled payments)
Virtual cards are not required to be authenticated by 3D Secure.
As soon as the card has been received from myallocator (channel manager by Cloudbeds)/OTA, Cloudbeds will send an email to the main guest. Which email is sent out depends on the setting in Payment options page as shown below:
- Do nothing → Authentication request email will be sent
- Process immediately → Payment request email will be sent
- Postpone processing → Authentication request email will be sent
- Authorize immediately → Authorization request email will be sent
- Postpone authorization → Authentication request email will be sent
Learn more about Scheduled Payments here: Payment Processing Setup
Cards added to House Accounts
Step 1. The cards that need to be authenticated by 3D secure will trigger a modal where the user should enter an email address.
Step 2. The user will see a modal when email is sent to the guest for authentication, authorization, and payment
Step 3. Payment Pending approval will be added to the house account and posted after the guest's approval.
- You can check the Email Delivery Log tab, to see if the House Account email was sent to the correct address or to resend the emails.
- Emails triggered in House Account don’t contain any item or reservation information. Check an example below:
Cards added to Groups
The system always requests the card holder’s email like in house accounts. The cards that need to be authenticated by 3D secure will trigger a modal where the user should enter an email address.
- You can check the Email Delivery Log tab, to see if the Groups email was sent to the correct address or to resend the emails.
- Emails triggered in Groups feature don’t contain any item or reservation information. Please check below an email example: