What is 3-D Secure?

3D Secure (3DS) is an authentication method with an extra layer of authentication for credit card transactions to protect against fraudulent charges. 3DS asks customers to verify their identity during payment. In most scenarios, businesses direct customers to a verification page on their bank’s site to type in a password linked to the card or a code sent to their phone. Some card networks’ have their own branded 3DS method such as Visa Secure and Mastercard Identity Check.

How does 3D Secure work?

During the online payment process, 3DS technology assesses whether the customer is the rightful card owner. Customers are directed to a 3DS page and asked for a password or PIN. At the same time, their bank generates a one-time PIN and sends it to their phone as an SMS. Customers enter this PIN to complete the transaction.

Advantages of 3D secure technology

There are several advantages to 3DS:

• They’re used by most major credit cards, increasing transaction security
• They provide a secure, frictionless customer experience
• Customers can verify their information on any device
• 3-D Secure can shift liability for fraudulent chargebacks from the account owner to the card issuer

Disadvantage of 3DS

Some users aren’t able to tell whether the 3D Secure pop-up is legitimate and mistake authentication pop-up pages for phishing scams. This can increase cart abandonment or make customers lose trust in the business.

How to activate 3D Secure

Individuals don’t need to activate 3D Secure authentication for online purchases. Major credit card issuers usually already have 3D Secure built into their payment processes. Businesses can activate 3D Secure on their checkout pages.

What to do if 3D Secure authentication failure occurs

Individuals can receive a 3D Secure failure message if they don’t provide the right information. For example, if someone mistypes their one-time passcode, enters the wrong card details, or incorrectly answers their security question.

If the 3D Secure process is not authenticated, the individual can repeat the process and correct any errors. If the 3D Secure fails when using the right information, they should contact their credit card provider for additional support.

What is the PSD2 SCA?

PSD2 is the second European Payment Services Directive. Under the PSD2 Strong Customer Authentication (SCA) requirements, some payment transactions require two-factor authentication. If the issuer can’t perform authentication, the transaction may be declined. 3-D Secure allows merchants to support SCA. PSD2 SCA affects everyone doing business in the European Economic Area (EEA).