Why does Facebook Ads require additional authentication when using a VCC?

Facebook Ads may require additional authentication when using a Virtual Credit Card (VCC) for a few reasons related to security and fraud prevention. Here's why this may happen and what you can do to resolve it:

Reasons for Additional Authentication with a VCC on Facebook Ads:
1. Fraud Prevention Measures:
Facebook has strict security measures in place to prevent fraudulent activity on its platform, especially with online payments. Using a VCC can sometimes trigger additional checks because these cards are not linked to a physical address or may have an anonymous nature, making them higher risk for fraud.

As a result, Facebook might ask for additional authentication to ensure that the transaction is legitimate and that the person making the payment is authorized to do so.

2. 3D Secure (3DS) Authentication:
Many VCC providers use 3D Secure (3DS) as a standard security protocol to confirm that the cardholder is the one making the purchase.

When you use a VCC for Facebook Ads, you might be prompted to enter a one-time passcode or authenticate via your bank or payment provider to complete the transaction. This step ensures that you're the legitimate cardholder, and it's commonly used for online transactions.

3. Card Issuer Security:
The VCC provider (e.g., Privacy.com, Revolut, or Wise) may require you to go through additional steps to verify the transaction before processing it.

Some VCCs have built-in fraud prevention features that block transactions until the cardholder confirms that they are authorized. This could include receiving an SMS code or email from the provider to verify the transaction.

4. Address Verification System (AVS):
Facebook may also use Address Verification System (AVS) checks to ensure the cardholder's information matches what is on file with the card issuer. Since VCCs are often issued without a billing address or have a non-standard address, this might trigger a request for additional verification.

Facebook may ask you to confirm the card details or provide proof of your identity to resolve this mismatch.

5. Suspicious or High-Risk Transactions:
If Facebook's system detects that the transaction appears unusual—for example, if it comes from a different geographic location, involves an unusually high spend, or is associated with a new account—additional authentication may be required as part of their risk assessment.

How to Resolve Additional Authentication Issues with a VCC:
1. Complete 3D Secure Authentication:
If Facebook prompts you for 3D Secure authentication, you'll need to complete the process with your VCC provider. This could involve receiving a passcode or an authentication request via your provider's mobile app or email.

Follow the prompts on Facebook to verify your identity and confirm the transaction.

2. Ensure Correct Card Information:
Double-check that the card details (e.g., card number, expiration date, CVV) are correctly entered in your Facebook Ads payment settings.

If the VCC provider issues a temporary card number, make sure you are using the correct one for the transaction.

3. Confirm Your Identity with the VCC Provider:
If you haven't already, ensure that your VCC provider has your correct details and that the VCC account is verified. Some providers require you to verify your identity before using their cards for online payments.

4. Check for Address Verification Issues:
If Facebook is asking for address verification but your VCC doesn't have a linked address, consider contacting your VCC provider to add or update your address on file, or try using a VCC that supports AVS checks.

Alternatively, use a traditional credit card with an established address if you continue facing issues with the VCC.

5. Contact Facebook Ads Support:
If you continue to face issues with the authentication process or the VCC is being blocked, you can reach out to Facebook Ads Support to see if they can assist with resolving the issue.

They might help troubleshoot any potential issues related to payment verification or assist with any security-related concerns.

Conclusion:
Facebook requires additional authentication when using a VCC to ensure secure transactions and protect against fraud. This may involve 3D Secure authentication, address verification, or other checks depending on the VCC provider and the nature of the transaction. Completing these steps will ensure your VCC is properly authenticated for Facebook Ads payments.
If you're encountering persistent issues, I recommend reaching out to both your VCC provider and Facebook Ads Support for further assistance in resolving the matter.