3D Secure

May 5, 2023 | Payments

What is 3D Secure?

In short, 3D Secure was created by Visa and MasterCard to add an additional layer of security for Card Not Present (CNP) merchants. Moreover, 3D Secure ties the financial authorization process with online authentication based on a three-domain model (3D). The three domains consist of:

Acquirer Domain (the bank and the merchant to which the money is being paid)
Issuer Domain (the bank which issued the card being used)
Interoperability Domain (Visa & MasterCard)

Crush Disputed Transactions for Your Card Not Present Business with 3D Secure

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How 3D Secure Works

The 3D Secure feature works through the 3D Payment Gateway enables the shopper to enter a password to confirm their identity with the card issuers. Additionally, If the card issuer accepts the password then they complete their order and this comes to you as a legitimate and authenticated transaction.

This means that:
Merchants have added protection from fraudulent payments
It allows merchants to sell their products online with more safeguards
It enhances the customers confidence in the merchant resulting in increased spending
Reduces costs from fraudulent chargebacks by cutting down on the amount of fraud

What are the benefits of using 3D Secure?

Reduce Disputes

The primary benefit of 3-D Secure is reducing disputes. In fact, this technology also reduces expenses and losses. To that end, approximate 80% of all e-commerce chargebacks and fraud are preventable. Moreover, you can eliminate a proportion of customer complaints with the use of Authenticated Payment. As a result, 3D Secure has a positive impact on Member profitability.

3D Secure Payments

A less tangible, but nevertheless real benefit is the assurance members provide to their cardholders who are considering e-commerce transactions. Studies indicate that as many as a third of cardholders are afraid to shop online. Security concerns and a fraud prevalent online landscape make customers reluctant. To contend with this fear, an Authenticated Payment may convince prospective ecommerce shoppers that it is safe to use their card online.