Stripe Authentication Required: Meaning and How To Fix?

Stripe's authentication_required response can be puzzling for merchants and developers. This decline code appears when a payment needs extra security steps. It often happens with certain credit cards or in regions with strict rules.

The authentication_required code means the transaction needs more verification, usually through 3D Secure.

When you see this code, it doesn't mean the payment failed for good. The customer can try again on their own or merchants can layer on Churnkey to reduce revenue lost due to failed payments.

Key Takeaways

• Authentication_required signals a need for extra security steps in a payment
• 3D Secure is often used to complete the required authentication
• Proper handling of this code via Churnkey can lead to successful transactions and improved security.

Understanding Authentication Required in Stripe

Stripe uses authentication to keep payments secure. Sometimes, payments need extra steps to verify the customer's identity.

Authentication Basics

Authentication in Stripe means checking if a payment is real. It helps stop fraud. Stripe uses different ways to do this.

For some payments, Stripe asks for more info. This is called "authentication_required". It means the bank wants to double-check the customer.

When this happens, the payment might not go through right away. The customer may need to take extra steps.

How Stripe Manages Authentication

Stripe handles authentication in a few ways. They use 3D Secure. When a payment needs more checking, Stripe sends a code. This code tells the merchant what's happening.

The Stripe Dashboard shows these codes. It helps merchants understand why a payment didn't work.

For some payments, Stripe uses Strong Customer Authentication. This is a rule in Europe that makes online buying safer.

Stripe's API can help with authentication too. It lets merchants set up special checks for payments that need them.

Understanding Strong Customer Authentication (SCA)

Strong Customer Authentication (SCA) aims to make online payments more secure. It requires extra steps to verify a customer's identity when making payments in Europe.

SCA Requirements in Europe

SCA is a European rule that started in September 2019. It's part of the PSD2 regulation. SCA applies to most online card payments in Europe.

The rule needs at least two of these three things to confirm a payment:

• Something the customer knows (like a password)
• Something the customer has (like a phone)
• Something the customer is (like a fingerprint)

Banks may reject payments that don't meet SCA rules. This helps stop fraud and makes online shopping safer.

Effect on Customer Experience

SCA changes how customers pay online. 3D Secure is often used to meet SCA rules. This adds a step to the payment process.

Customers might need to:
• Enter a code sent to their phone
• Use their banking app to approve a purchase
• Provide a fingerprint or face scan

These extra steps can slow down checkout. But they also make payments more secure. Businesses need to update their payment systems to work with SCA.

Some low-value transactions may not need SCA. This helps keep small purchases quick and easy.

Handling Authentication Failures and Declines

Payment authentication issues can lead to lost sales. Understanding common decline codes and implementing preventive measures helps minimize authentication failures and fraud.

Common Decline Codes and Responses

When a payment fails, Stripe provides specific decline codes to explain why. The "authentication_required" code means the payment needs further verification.

For this code, ask the customer to try again or use a different payment method. Some issuers may decline already authenticated payments, especially with Mastercard.

Other common codes include:

• "card_declined": The card was rejected by the issuer.
• "insufficient_funds": The account lacks money to cover the charge.
• "do_not_honor": The bank rejects the transaction but doesn't tell you why.

Respond to each code appropriately. For expired cards, request updated information. For insufficient funds, suggest trying again later.

If churn is a problem worth solving (anywhere over 4% monthly churn), consider using Churnkey. It's a holistic solution to tackle both involuntary and voluntary churn at all levels, including authentication_required error codes.

The number one question to answer is, "how much are you losing due to involuntary churn like authentication required decline". Churnkey's free churn metrics can help answer that question and guide your churn reduction strategy.

Preventing Fraud and Unnecessary Declines

Implement strong fraud prevention measures to reduce unnecessary declines. Use Stripe Radar to set custom rules for detecting suspicious transactions.

Collect additional data like billing zip codes to improve verification. Enable 3D Secure for an extra layer of security on high-risk transactions.

Regularly update stored payment information to prevent declines from expired cards. Use clear error messages to guide customers through authentication issues.

Consider offering alternative payment methods to reduce reliance on card payments. This can help bypass some common authentication problems.

And so much more! Customers at Churnkey save 20-40% of the subscription revenue that they might lose to churn. Implementation is easy and straightforward. Some of our products include cancel flows, reactivations, failed payment recovery, feedback AI to offer a holistic churn solution.

Strategy for Future Payments and Subscriptions

Setting up a robust system for future payments and subscriptions is key to business growth. This involves careful management of customer payment methods and thoughtful design of subscription models.

Managing Customer Payment Methods

To handle future payments smoothly, businesses should set up cards for future use. This can be done when processing an initial payment or as a separate step.

Stripe offers a feature called "setup_future_usage" that allows for non-payment 3D Secure authentication. This helps ensure the success of future transactions.

When attaching a payment method to a customer, it's important to consider security. Stripe's authentication optimization engine can help balance conversion, cost, and fraud prevention.

Businesses should also be aware that card issuers may occasionally provide an authentication_required decline code even on payments that have gone through 3D Secure. This typically happens with Mastercard-branded cards.

Frequently Asked Questions

Stripe users often encounter authentication challenges when processing payments. These questions address common issues and provide guidance for resolving them.

How can a charge be authenticated with Stripe when 'authentication_required' is prompted?

When Stripe prompts for authentication, the customer needs to complete 3D Secure authentication. This extra security step helps verify the cardholder's identity.

Merchants can trigger 3D Secure automatically, use Radar rules to control when it's required, and install an involuntary churn software like Churnkey to reduce failed payments.

What are the common decline codes encountered with Stripe transactions?

Common Stripe decline codes include 'authentication_required', 'card_declined', and 'insufficient_funds'. Each code gives insight into why a transaction failed.

Understanding these codes helps businesses troubleshoot payment issues more effectively.

What should be done when a card is declined due to 'authentication_required' by Stripe?

If a card is declined with 'authentication_required', the customer should contact their card issuer for more information. They may need to verify their identity or update their card settings.

Alternatively, the customer can try a different payment method to complete the transaction. You can also retry payments intelligently with Churnkey.

How to resolve issues when Stripe is unable to authenticate the payment method?

When authentication fails, first check that the customer entered their card details correctly. If the problem persists, the customer may need to use a different card.

Merchants can also consider enabling alternative payment methods to provide more options for customers.