What is 3D Secure?
When you make a payment for an online purchase, 3DS technology gauges if further safekeeping is needed to make sure that you are the rightful card owner.
For some transactions that meet a specific criteria, a One-Time Passcode, or OTP, is generated for the person attempting the transaction.
How Does 3D Secure Work?
3D Secure is a strong client authentication (SCA) method that typically requires cardholders to answer a security question or enter a specific PIN sent via SMS or email. Here’s how the process works:
- The cardholder enters their unique card data into the merchant’s online payment gateway.
- The system first checks if the card details are correct and then if 3D Secure has been enabled.
- If 3D Secure is enabled, the cardholder is redirected to either a separate page or an embedded frame.
- This redirect frame will contain instructions for the cardholder to verify their identity.
- If the cardholder enters the correct information, the acquirer authorizes the payment.
- The customer is then redirected back to the merchant’s website to receive a confirmation of their purchase.
When you make an online purchase, 3DS technology assesses whether additional security is necessary to confirm your identity as the cardholder. If required, you will be redirected to a 3DS page and prompted to enter a password or PIN.
What are the Benefits of 3D Secure?
The most obvious advantage of the 3D Secure protocol is its protection against online payment fraud for both merchants and customers.
While transaction speeds may be slightly slower due to the additional identification step required for customers, the benefits for merchants are substantial.
The primary benefit of using 3D Secure is that, in cases of fraud and subsequent merchant chargebacks, the liability shifts to the card issuer.
