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 several reasons, as part of their efforts to enhance security and fraud prevention. Here's why this happens and what you can do about it:

1. Fraud Prevention and Security Checks:
Virtual Credit Cards (VCCs) are often viewed as less secure or less reliable than traditional physical credit cards because they can be easily created and may have fewer security measures in place. To mitigate potential fraud, Facebook often requests additional authentication when a VCC is used for advertising payments.

Facebook wants to ensure that the transaction is legitimate and that the payment method is authorized by the cardholder.

2. Compliance with Payment Card Industry (PCI) Regulations:
Facebook, like many other platforms, must comply with PCI DSS (Payment Card Industry Data Security Standards). This means they must follow strict procedures to protect the security of payment methods and ensure that payments are authentic and secure.

Two-factor authentication (2FA) or additional verification steps may be required to confirm that the VCC holder is the person actually initiating the payment.

3. Address Verification System (AVS) and CVV Validation:
AVS (Address Verification System) and CVV (Card Verification Value) checks are standard methods used by payment systems to confirm that the billing information associated with the VCC matches the information on file with the card provider. If the information doesn't match, Facebook may ask for additional authentication to ensure the transaction is legitimate.

Solution: Make sure that the billing address on your VCC matches what is entered in Facebook Ads.

4. New or Unusual Payment Behavior:
If Facebook notices new or unusual payment behavior, such as a new VCC being added, an uncommon geographical location, or multiple failed transactions, they may trigger additional verification steps to protect against fraud or unauthorized transactions.

For example, if you're making large payments or using a VCC issued in a different country, Facebook may require you to authenticate the transaction to prevent unauthorized access to your account.

5. High-Risk Transactions:
High-risk transactions, like large amounts or multiple ads being created in a short period, are flagged for additional authentication to ensure that the payments are not fraudulent.

In such cases, Facebook may ask for further verification to confirm that the transaction is legitimate.

6. VCC-Specific Issues:
Some VCC providers may require you to complete additional steps to authenticate the card before it can be used for online transactions. This could involve:

Activating the card.

Verifying the card through a third-party system like 3D Secure (e.g., "Verified by Visa" or "MasterCard SecureCode").

Linking the VCC to your identity or confirming the card's details with your VCC provider.

7. Facebook's Risk and Billing Policies:
Facebook has its own set of risk and billing policies that are designed to prevent fraudulent ad spending or unauthorized access to accounts. VCCs can sometimes be flagged as higher-risk payment methods, which may prompt additional authentication steps.

This is especially true if you've recently updated your payment method or if Facebook's system detects a discrepancy in payment information or account activity.

What You Can Do to Avoid Authentication Requests:
Ensure Correct Billing Information:

Make sure that the billing address on your VCC matches exactly with the details you entered in Facebook Ads.

Activate the VCC:

If you're using a single-use or temporary VCC, ensure it's activated and ready to be used for payments.

Use Verified VCC Providers:

Use VCC providers that support 3D Secure or other authentication methods. Providers like Privacy.com, Revolut, and Wise often allow you to complete authentication steps easily.

Enable Two-Factor Authentication (2FA) for Facebook:

Enable 2FA on your Facebook account to reduce the likelihood of security issues and add an extra layer of protection during payment processes.

Avoid Multiple Payment Attempts:

Avoid making multiple payment attempts in a short period, as this may trigger security alerts on Facebook's end.

Contact Your VCC Provider:

Some VCC providers require additional authentication steps, like entering a one-time code sent to your email or phone. Make sure that you've completed all necessary steps with your VCC provider before using it with Facebook Ads.

Ensure Sufficient Funds:

Ensure that your VCC has enough funds to cover the payment and any additional fees that may arise (like Facebook's ad tax or transaction fees).

Contact Facebook Support:

If you're still facing difficulties with the authentication process, contact Facebook support. They can provide specific information about why the additional authentication is needed and assist you in completing the payment.

Conclusion:
Facebook requires additional authentication when using a VCC for fraud prevention, compliance with PCI regulations, and to ensure that payments are legitimate. This is especially important for new cards, large payments, or unusual behavior. To avoid such issues, make sure your billing information is accurate, your VCC is activated and verified, and use secure VCC providers. If the problem persists, contact Facebook support for further assistance.