What Is 3D Secure Authentication?

June 7, 2019 . by Aaron B

It’s always important for you to stay up to date with the latest technological advances and developments that could affect your own online store. One of the latest changes that will be coming into effect over the next few months is 3D secure 2.0 for online payments. This is a new update that aims to make online payments and transactions as secure as possible. By using a 3D secure tool in your online store, you’ll be building trust with your current customers, and this exceptional form of security could even win you a lot of new business.

 

How Does 3D Secure Authentication Work

You might be thinking that the ‘3D’ refers to ‘three dimensional’ when it is used to refer to movies. That’s not the case here, though. In fact, it means ‘3 domain’. This 3 Domain Secure is an extra layer of authentication that you can apply to any financial transactions carried out in your online store.

It aims to authenticate card payments. As well as that, it is also one further way to protect the seller and his bank from fraudulent card transactions. The cardholder and their bank, as well as the Card Association’s network will also be fully protected against any fraudulent activity.

The 3D Secure is activated as soon as a customer clicks on the payment button. A 3D secure window will appear or pop up and ask the customer to verify themselves. This will be required in order to confirm the card payment. If they are unable to authenticate themselves, then the transaction will be immediately cancelled.

The window that pops up will feature MasterCard SecureCode or Verified by Visa logos so that you and your customers can be reassured of its security. When prompted, the customer will need to enter into a password into the 3D Secure window. This will be what they use to authenticate themselves with. They will receive their password from their bank, and this will be required whenever they need to verify a payment using 3D Secure.

 

Reasons to Use 3D Secure Authentication

  • It Reduces Online Fraud

3D Secure has been shown to significantly reduce the risk of online fraudulent activities. This includes the likes of unauthorised card use and attempts of identity theft. That’s because the card data is completely secured and protected throughout the whole transaction. Only completely genuine customers will be able to make a payment using 3D Secure. As a result, this will greatly increase your customers’ trust in your website.

  • Reduces The Chance Of Any Chargebacks

You will be able to instantly check whether there is a buyer is authentic or not when you start to use 3D Secure. That’s because the authentication will show whether they are using their card legitimately or not. When you use 3D Secure, it will tell you whether a fraudster is using the card straight away. The transaction will then be cancelled, and you won’t have to worry about any chargebacks of disputes regarding the payment.

  • It Changes The Liability Over Chargebacks

Once you start to use 3D Secure, there will be a shift of liability over chargebacks. Instead of you being the one who is liable, it will now be the buyer’s card issuer. This means that it will be easier for you to bring up and dispute any concerns concerning a transaction.

 

3D Secure 2.0

3DS 2.0 is the early stages of adoption by issuing banks, which means that 3DS authentication attempts aren’t benefiting yet from the new 3DS 2.0 protocol. That said, the broader rollout of 3DS 2.0 is coming — and soon.

 

What Does This Mean For Your Online Store?

By now you are probably wondering what this means for your online store. The answer is simple – it will make it a lot more secure for you and all of your customers. As you can probably tell, is highly recommended that you roll out 3D Secure authentication.

In fact, from September this year, you will need to utilize 3D secure in all of your online transactions. That’s because new European regulations will come into play that will require all online stores to use 3D Secure for much stronger and more secure online payments. This new ruling is known as Strong Customer Authentication (SCA). If you don’t follow these regulations and try to carry out transactions without using 3D Secure, then there will be a good chance of them being declined by the bank.

If you don’t already use 3D Secure for your online store, it is really recommended that you think about rolling this out. It will be much better to do so sooner rather than later. That way, there is no chance of you being caught out by the SCA ruling from September later in the year.