How does PayPal handle 3-D Secure (3DS) authentication for Branded Checkout Transactions?

Checkout with Wallet (PayPal Account Holder)

1. We’ll ensure that all European Economic Area-issued cards in the wallet are 3DS challenged while adding the card. This ensures that the card is securely added to the wallet.
2. For all subsequent transactions against the card, we’ll ensure there is no additional friction to the customer’s journey.
3. In some circumstances, we may still request that the cardholder be authenticated by their card issuer for risk or compliance reasons. In this case, we’ll handle the experience by completing the necessary actions of the 3DS process to complete the transaction.
   

Checkout as a Guest

We’ll initiate 3DS authentication for every guest transaction. The decision to challenge the customer (for instance, with a one-time password) will reside with the Issuer.