To ensure the highest level of security for your property and your guests, Cloudbeds is enhancing how manual credit card transactions are handled. This guide explains the 3D Secure (3DS) confirmation process, why it is necessary, and how it impacts your daily operations.
What is 3D Secure (3DS)?
3D Secure is an additional layer of security for online credit and debit card transactions. It acts as a digital "handshake" between the guest and their bank to verify that the person making the payment is the authorized cardholder.
Why is this change happening?
This update is part of a security enhancement for all properties using Cloudbeds Payments or Stripe Direct. By triggering 3DS more frequently during manual card entry, we provide:
Fraud Protection: Significant reduction in the risk of unauthorized charges and costly chargebacks.3
Higher Authorization Rates: Banks are much more likely to approve transactions that have been verified via 3DS.
Industry Compliance: Aligning with global payment standards and Stripe-enforced security rules.
How the Process Works
When you manually add a guest’s credit card details into the Cloudbeds PMS to process a payment, the system will now follow these steps:
1. Staff Adds the Card
Your team enters the credit card information into the Cloudbeds interface as usual. Upon clicking "Process," the system triggers the security protocol.
2. Guest Verification Email
The system automatically sends a secure 3DS confirmation email directly to the guest. This email contains a link that directs the guest to a secure page hosted by their bank.
3. Pending Status on Folio
While waiting for the guest to take action, a Pending Transaction will appear on the reservation folio. This serves as a placeholder while the bank verification is in progress.
You can Navigate to reservation's email messages to view what was sent to the guest:
4. Final Result
The outcome depends entirely on the guest's action:
| If the Guest... | The Result is... | Folio Impact |
|---|---|---|
| Completes the verification | Success | The "Pending" transaction turns into a Posted payment. |
| Declines or fails verification | Failed | The "Pending" transaction disappears. The card becomes un-processable and must be re-added to try again. |
What Your Staff Needs to Know
To ensure a smooth check-in and payment experience, please keep the following operational tips in mind:
Identifying Pending Payments
If you attempt to process a payment on a card that is already awaiting a guest's 3DS confirmation, Cloudbeds will display a warning. No additional pending transactions will be created for that card until the first one is resolved.
When a Guest Fails Authentication
If a guest declines the 3DS prompt, the card data is invalidated for security reasons. You cannot "reactivate" it; your staff must manually re-add the card details to start a new 3DS request.
Best Practice: Use "Pay by Link"
For remote bookings or payments handled over the phone, we highly recommend using Pay by Link.
Why? Instead of your staff manually typing in sensitive card data, the guest enters their own information and completes the 3DS step in one seamless flow. This is the most secure way to handle "Card Not Present" transactions.
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