What is 3D secure authentication and how does it work?

Payment security is essential in a landscape where fraud becomes increasingly creative and sophisticated. To safeguard financial transactions and minimize risks, it is crucial to adopt proactive measures that add extra layers of protection against fraud. One widely used solution is 3D Secure, which provides additional verification during the payment process, ensuring greater security for businesses and consumers alike.

What is 3D Secure Authentication (3DS)?

3D Secure is a security protocol that adds an extra layer of protection to online transactions made with credit and debit cards. It involves validating each transaction through various methods, such as entering a specific password or a randomly generated PIN linked to the user’s account and card.

The name "3D Secure" stands for Three Domain Secure, as it involves three key parties in the process:

Issuer domain: The bank or financial institution that issued the card to the cardholder.

Acquirer domain: The online store or merchant where the transaction is taking place.

Interoperability domain: The system or infrastructure that connects the two previous domains and verifies the authentication.

3D Secure: How does it work?

When making an online purchase and entering card details at the merchant's checkout, the user will be prompted to confirm card ownership. The process follows these steps:

Step 1: After providing the card details and proceeding with the transaction, the system checks whether the payment method has 3D Secure enabled.

Step 2: If the 3D Secure protocol is identified, you are redirected to a secure window managed by your card issuer.

Step 3: In this window, you must authenticate the transaction. This can be done via a user-specific password for 3D Secure, a code sent via SMS or email (two-factor authentication - 2FA), or even biometric recognition such as fingerprint or facial recognition (on supported devices). Each card issuer implements its protocol according to user preferences.

Step 4: After successful authentication, the transaction is approved, and the customer is redirected back to the merchant’s site to complete the purchase process.

What is the importance of 3D Secure (3DS)?

The importance of 3D Secure extends beyond fraud prevention. It also plays a broader role in fostering trust in e-commerce, ensuring regulatory compliance, and enabling merchants to provide a secure and seamless shopping experience. By balancing security and convenience, 3DS is a vital component in the evolution of online payments.

Advantages of 3D Secure

• Increased security: Protects against fraud and unauthorized transactions.
• Reduction in disputes and chargebacks: Ensures that the transaction is authenticated by the cardholder.
• Regulatory compliance: Facilitates adherence to regulations, such as Strong Customer Authentication (SCA) requirements in certain regions.

Disadvantages of 3D Secure

• Friction in the purchase process: In some cases, additional steps may discourage customers from completing their purchases, as they must leave the checkout environment to authenticate.
• Limited compatibility: Not all merchants, payment providers, or banks support 3D Secure.
• Costs: Merchants may face additional costs to implement the protocol.

The latest version, 3D Secure 2.0, seeks to address many of these issues by offering a more streamlined and user-friendly experience while meeting modern security demands.

Jeeves Business Cards: 3D secure authentication and additional layers of protection for your transactions

Choosing Jeeves Business Cards ensures online transactions with maximum security and tranquility. With 3D Secure technology and other advanced layers of protection, you can safeguard your business against fraud, maintain regulatory compliance, and offer a reliable payment experience for companies and users. Get started today!