What is 3D Secure?
Also known as payer authentication, 3D Secure is a security protocol that helps prevent fraud in online credit and debit card transactions. This additional security was first initiated and created by Visa and MasterCard. It was branded as “Verified by Visa” and “MasterCard SecureCode” respectively.
How Does 3D Secure Work?
Let's assume you own an e-commerce site and 3D Secure is active on your website. When your customer completes the transaction with a card registered in the 3D Secure program, the process proceeds as follows.
✦ The customer enters their credit or debit card information into the payment form.
✦ SecurionPay connects with a directory server and receives the message that the card is registered in the program.
✦ The customer enters the password or a one-time PIN. The card-issuing bank also displays the 3D Secure page when it needs to perform authentication.
✦ The result of the 3D Secure authentication goes to SecurionPay and then sends the transaction details to the acquiring bank.
✦ The customer sees the response on the screen regarding whether the transaction was successful or failed.
What Are the Advantages of 3D Secure?
In addition to 3D Secure being easy to use, its most important advantage is that it reduces internet fraud. These systems make online shopping safer, increase customers' trust in the system, and consequently increase sales figures.
A positive customer experience created in an e-commerce system affects customer loyalty to your brand in the long term.
The term 3D Secure technically refers to 3 Domain Servers. The name of the protocol stems from the fact that it involves three parties who are key figures in the 3D Secure process. They are:
✦ The merchant company, selling the item…
✦ The company's collaborating bank…
✦ The organization issuing the card and the system – VISA or MasterCard.
The process is a collective initiative launched with the desire for “Verified by VISA” (VBV) and “MasterCard Secure Code” (MSC). It can be said to be the most up-to-date fraud prevention method available in online marketing and the business world.
Today, the 3D Secure protocol has been replaced by its more advanced latest version, the 3D Secure 2.0 version.
What Are the Main Differences Between 3D Secure 1.0 and 2.0?
✦ Strong authentication - static passwords and biometric security regulations…
✦ Enhanced customer experience…
✦ Friction in the transaction process is reduced, conversions accelerated…
✦ Support for mobile clients started to be offered…
3D Secure Authentication
E-commerce and online trading have become highly popular over the past few years. They have grown to a larger extent due to their convenience, flexibility, and comfort. Along with this, credit card usage has increased significantly. However, the credit card system has its pros and cons. Many people have complained about credit cards being hacked, misused, and similar illegal uses. To significantly increase the security of online storefronts and make it hassle-free, a 3D Secure XML-based protocol was introduced. 3D Secure has greatly influenced the protection of online transactions thanks to the unique secure password system that has started to be implemented by every customer. While 3D Secure is considered the only fraud prevention scheme that provides extra protection to card transactions, 3D Secure 2.0 is another level of security.
3D Secure Advantages for Merchants
It is fair to say that 3D Secure is a revolutionary functionality. This online payment verification method provides various advantages for e-commerce site owners and their customers. First of all, it makes online shopping much safer. Turkey's web design firm Dijiworks states on many platforms that this situation increases company credibility and brand loyalty.
In addition to the most important advantages mentioned above, you can also expect:
Liability Shift: For online companies using 3D Secure payment authentication, the main use of this system is an assurance of liability shift in every successfully verified transaction. Once the assumption of liability is completed, card issuers provide protection. In this case, it is the merchant's responsibility to obtain approval regarding the terms and conditions related to liability shifts.
Reduced Fraud Risk and Higher Protection: 3D Secure not only reduces the risk of fraudulent transactions but also reduces the risk of disputed transactions. The extra security layer reduces the number of chargebacks, therefore making payments much safer.
No Extra Cost: When you choose a smart payment gateway, no extra cost is required to add 3D Secure to your account.
Fewer Disputed Transactions: Since 3D Secure aims to reduce fraud causes, it allows merchants to reduce the number of disputed transactions and improve sales results.
Higher Customer Satisfaction: If customers are sure that the payment on a website is secure, they are more likely to complete transactions.
Strong Customer Authentication (SCA) Compliance Under PSD2: Finally, 3D Secure 2.0 is the main solution to comply with the European SCA regulation, which requires multi-level authentication to verify payments.
When everything is considered, there is no doubt that the 3D Secure system is a state-of-the-art online payment verification system that significantly increases transaction security and thus significantly improves the customer experience.
Service Restrictions
The 3-domain structure has certain limitations. Currently, not all cards participate in the program authentication payment scheme.
Chargeback Liability of 3D Secure
Regarding chargeback liability, 3D Secure plays the role of an additional layer of protection provided by the card issuer.
Frequently Asked Questions and Answers About 3D Secure
Is 3D Secure Safe?
3D Secure is a security protocol that aims to prevent the fraudulent use of credit cards by authenticating the identity of cardholders in card-not-present transactions.
Do All E-Commerce Sites Use 3D Secure?
No, the decision to implement 3D Secure is up to the merchant.
What Does 3D Secure Authentication Error Mean?
In most cases, a transaction is completed smoothly, while sometimes you see the error message “3D authentication failed”. This means that the cardholder did not enter their information correctly. A 3D secure authentication error can be caused by anything from a mistyped card number to an incorrect expiration date.
Dijiworks uses 3D Secure on its own website and on customers' e-commerce sites.