Stripe Helps Businesses Cut Network Costs With Visa's DCAP

Visa has rolled out the Digital Commerce Authentication Program (DCAP), a global framework aimed at reducing fraud and boosting authorization rates on card-not-present transactions. Businesses in the US that share richer data—device ID, billing address, IP address, customer email—during authentication earn a five-basis-point reduction in net interchange.

Participating in DCAP isn't trivial: businesses must determine transaction eligibility, ensure their integrations pass the right data via frictionless authentication, and weigh whether the added latency and uncertainty around issuer interpretation actually improve end-to-end economics without hurting approval rates.

Stripe worked with Visa on readiness testing and built a transaction-level solution rather than static rules. Its Authorization Boost feature evaluates each transaction individually—balancing cost savings, conversion impact, and fraud risk—to decide when to route it through Data Only 3DS, letting merchants capture DCAP savings without harming checkout experience or authorization rates.

Since April 18, Stripe has helped businesses capture $18.4 million in annualized network cost savings and achieved an 8x increase in DCAP-eligible transactions by improving data collection. Merchants already using Authorization Boost with the required data points benefit automatically, while those on standalone 3DS can opt in by setting flow_preference[type] to data_share.