Supporting Enterprise Network Cost Optimization via Visa's Digital Commerce Authentication Program (DCAP)

Visa launched the Digital Commerce Authentication Program (DCAP) to reduce fraud in card-not-present transactions and increase approval rates. When participating companies share rich transaction data—such as device ID, IP address, and customer email—with issuers, they receive a net interchange discount of 5bp (basis points) on eligible transactions.

However, new network programs can introduce complexities such as integration delays or reduced approval rates. To address this, Stripe introduced Stripe Authorization Boost. Instead of static rules, this feature evaluates cost savings, conversion impact, and fraud risk at the individual transaction level to intelligently decide whether to apply Data Only 3DS.

Through this, Stripe maximizes DCAP benefits while protecting customer experience and approval rates. Since April 18, Stripe businesses have saved $18.4 million annually in network costs through DCAP, and the number of DCAP-eligible transactions has increased 8x.

Companies using standalone 3DS can automatically receive these optimization benefits by setting flow_preference[type] to data_share and filling in the required fields when requesting authentication.