What is 3D Secure (3DS)?
3D Secure (short for "Three-Domain Secure") is an online payment security protocol designed to reduce fraud and enhance the security of card-not-present transactions. It involves three domains working together:
Issuer Domain: The bank or card provider that issued the card.
Acquirer Domain: The merchant’s bank or payment processor.
Interoperability Domain: The infrastructure enabling communication between the other two, typically managed by card networks like Visa or Mastercard.
3DS is often branded under names like Visa Secure, Mastercard Identity Check, or American Express SafeKey.
How Does 3D Secure Work?
When making an online purchase, you may be redirected to your card issuer’s secure authentication page. You’ll typically be asked to verify your identity by:
Entering a one-time password (OTP) sent to your phone.
Logging into your bank’s app or using biometric authentication (e.g., fingerprint or face recognition).
Answering pre-set security questions.
Once verified, the transaction is approved, and the payment process is completed.
Benefits of 3D Secure
Enhanced Security 🔒
Adds an extra layer of protection against unauthorized transactions.
Reduces the risk of fraud for both merchants and customers.
Customer Trust 🤝
Provides peace of mind to customers that their payment details are safeguarded.
Fraud Liability Shift ✅
For merchants, successful 3DS authentication shifts the fraud liability to the card issuer, reducing financial risks.
Regulatory Compliance 📜
Helps meet requirements like Strong Customer Authentication (SCA) under regulations like the European Union’s PSD2 (Payment Services Directive 2).
Improved Approval Rates 💳
Banks are more likely to approve transactions with 3DS, especially for international or high-value purchases.
In short, 3D Secure provides a safer and more trustworthy environment for online transactions, benefiting both consumers and businesses.