During a checkout process, which feature can help reduce fraud risks?

The feature that significantly helps reduce fraud risks during the checkout process is the requirement for 3D Secure. This is an additional security layer for online credit and debit card transactions. When 3D Secure is enabled, customers are prompted to enter a password or a code sent to their phone, which verifies their identity as the rightful cardholder. This process helps mitigate the risk of fraudulent transactions by providing an extra level of authentication.

Incorporating 3D Secure can lead to higher approval rates for transactions as it increases the issuer’s confidence in the legitimacy of the transaction. Additionally, it may provide liability protection against chargebacks for merchants, further making it a robust solution against fraud. This added security measure is crucial in today’s digital commerce landscape, where online fraud is increasingly sophisticated and prevalent.