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

A report from E-commerce attacks rates has confirmed that around 7% of the Americans have been the victims of online identity fraud. A significant increase in E-commerce fraud attacks has raised the importance of preventive measures.

You have to protect your customers and E-commerce businesses from online payment fraud. 3D secure is one of the latest resources that can reduce the chances of unauthorized payments and charges in your online business. With 3D Secure, a range of extra measures is applied to the credit card system to authenticate the cardholder making the transaction.

What is 3D Secure?

3d Safe Authentication is an essential fraud protection mechanism and applies to all businesses using Opayo technology to manage transactions. It enables shoppers to build and allocate a password to their card, which is reviewed if a purchase is made to a platform that facilitates the mechanism’s usage.

Adding password authentication provides additional security for purchases that are performed online.

3D Safe is the fraud protection system designed that gives liability protection to businesses with authenticated purchases. It offers extra security for businesses that utilize the system, as compared to those who do not.

Importance of 3D secure

• Reduces the risk of chargebacks

3D secure allows you to know about the legitimacy of a cardholder. It prevents the purchase of a fraudster from your online business, so you don’t have to deal with chargebacks and disputes.

• Minimizes online Frauds

The increased number of online frauds represents an alarming situation, and 3D Secure reduces the number of online frauds, including unapproved card use and identity theft. It helps protect the account information of legitimate cardholders and enhances consumer trust on your website.

• Shift chargeback liability

The liability changes from you to the issuer of your buyer’s card, and you are in a position to dispute the chargeback.

How does 3D Secure work?

If you own a website as a merchant and 3D Secure on your website is enabled, and when a user who is verified by the secure program uses his card for making the online purchase, this is how the 3D secure work looks like.

• The user will have to enter the account details in the payment form shown on the site.
• Payment Options makes communication with a directory server for the confirmation about the card.
• It gets a notification about the registration of that card in the program.
• A 3D secure page appears, and customers have to authenticate themselves in front of the issuing bank. They enter a PIN or password for the verification process.
• Payment Options receives the details of 3D secure authentication, and details of the transaction are shared with the concerned bank.
• Now the acquirer verifies and authorises the transaction.
• A notification is displayed about the successful or failed transaction to the user in the end.