Heard about ‘3D Secure’ in the online payment world? If you’re a merchant, this might be something you want to tune into already. Imagine a world where every transaction feels a tad safer, where you can breathe a bit easier knowing there’s an added layer against potential fraud. That’s 3D Secure for you.
It’s more than just a technical term or a standard procedure—it’s peace of mind in an era where cyber tricks are becoming trickier.
Where with every swipe, click, or tap, there’s always that question ticking in your head: “Is this transaction as safe as it can be?” 3D Secure offers a positive nod to your this concern.
“But, is it vital for my business?” is probably what’s most on your mind of all the lurking questions.
Well you probably know it, now-a-days, trust is the real currency.
As data shows with global businesses facing a staggering 41 billion U.S. dollars in online payment fraud in 2022, projected to hit 48 billion USD, what’s becoming clearer is: it’s no longer just about completing a sale. But it’s majorly about – building a reputation of trust, transparency and reliability in the eyes of your customers.
And making sure every transaction is legit? That’s just smart business.
And here’s the thing: it’s not just about deterring bad actors. It’s about projecting confidence, proving your customers that you’re invested in their security as much as they are.
So, stay with us as we dive deeper into 3D secure –
What is 3D Secure?
3D Secure, launched in 2001 by Visa Inc and Arcot systems, is a global identity verification solution that increases the security of your or your buyers online ecommerce transactions with an aim to reduce fraud. Over time, it has evolved into an industry-standard method trusted by major credit and debit card issuers.
So, it goes by various names – Verfied by Visa now Visa Secure, MasterCard SecurityCode now Identity Check, Discover as Protect Buy, American Express SafeKey, JCB International as J/Secure, etc.
The term “3D” in 3D Secure stands for the involvement of three domain server in the authentication process:
- Merchant’s Acquiring bank or domain
- The Infrastructure supporting the 3D Secure Protocol or The interoperability domain
- The bank that issued the card used in the transaction or the issuer domain
Question is : How 3D Secure Keeps Your Transactions Safe?
Imagine a customer is buying something from your online store. 3D Secure steps in and asks for a bit more information like a one-time password, a PIN, or maybe their fingerprint. It’s like a double-check to make sure it’s really them and make it difficult for fraudsters.
You may ask – Why or How It’s Good for Merchants
For you, the benefits of 3D Secure are pretty nice:
- Authentication: Makes sure that the card belongs to your customer.
- Fraud Prevention: Makes it tough for bad guys to use stolen cards.
- Compliance: Keeps in line with global rules like the Strong Customer Authentication (SCA) standards.
These mean:
- More Safety: You can less worry about problems with online transactions.
- Fewer Chargebacks: Adds a way to prevent chargebacks before they escalate.
- Lower Costs: It can be cheaper for you to process your customers’ payments.
- Easier Shopping: A smoother experience for your customers, making them feel safer.
When you think of 3D secure, one way to not overthink it is: using platforms like FastoSafe, a Market-Leading & Compliant Payment Security tool.
This brings us to…
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How 3D Secure Works
In the latest version of 3-D Secure (3DS2.0), around 100 points of transaction details, including information like IP address, merchant category code, and shipping address, are automatically sent to the issuing bank (your customer’s) in real-time. These act as an extra layer, reinforcing the safety of your online transactions.
Unlike earlier, with 3DS2.0 many transactions which are deemed “low-risk” do not require 3D secure measures. Interestingly these amount to approximately 95% of your transactions, per Visa Inc.
A transaction could be categorized low risk, if the customer is your repeat buyer or the payment is below a certain amount. It’s like smart folks behind the scenes look at the risk and say, “Hey, this one’s chill, let it go”. Here’s a caution, this may not be available or applicable in every region.
Breakdown of 3D Secure Working –
Card Information Collection:
The process begins as your customer provides their card details – the standard initial step in any online purchase.
3D Secure Enrollment Confirmation:
The system verifies if the provided card is enrolled in 3D Secure.
Redirection to Provider’s 3D Secure Page:
If the card is enrolled, your customer is directed to a specialized page from their card provider.
Additional Security Authentication:
At this stage, your customer may need to verify their identity using a password or a one-time code sent to their email or phone—a final check to confirm their identity.
Redirection to Merchant’s Website:
Upon successful authentication or verification, the system brings the customer back to your website for the final payment confirmation.
Payment Confirmation:
Back on your site, the customer receives confirmation that the payment has been successfully processed. Transaction complete! Voila!
Are You Obligated to Implement 3D Secure?
If you’ve an online business, adopting 3D Secure isn’t just a technical checkbox; it’s a smart move. It’s not a strict rule and you are not obligated to implement 3D Secure. But the Payment Services Directive (PSD2) established by the European Union has convinced banks into it to seal Strong Customer Authentication (SCA) in online payments.
Skipping 3D Secure isn’t just about breaking rules. It risks not meeting PSD2’s tough SCA demands. That could mean transactions getting flagged or rejected. It would also cause unnecessary friction and make your business an easy target for card-not-present fraud.
And nobody wants that, neither do you, right!
Additionally, enabling 3D Secure goes beyond following regulations, it’s a smart choice to push up the security walls. It decreases potential chargebacks and saves you from financial hits. More than rules, it’s about earning customer trust and brand reputation.
One thing to note is: PSD2 is a must for EU businesses, imposing SCA. And if you have a U.S. company dealing in the EU, 3DS 2.0 becomes mandatory because it matches with PSD2’s SCA requirements. Another new development that does signal incoming change is: Visa and MasterCard’s shift away from version 1 of 3D Secure.
In totality, the perks of 3-D Secure 2.0 sweeten the deal for you —lower cart abandonment rates and a blended customer experience. If that doesn’t attract you, then what will?
3D Secure Credit Card Authentication
3D Secure (3DS) is like a digital bouncer for your online store. When it’s activated, each online purchase undergoes a two-step authentication process making sure that only authorized or safe transactions proceed to deduct or transfer payments.
In practical terms, you guide customers to their bank’s verification page, where they input a password or add a code sent to their phone. This process is what recognized card networks use like Visa Secure and Mastercard Identity Check.
All in all, the verification step increases the security of your customer’s online transactions and also sticks to a standardized procedure accepted by major card networks.
How have the major credit card issuers implemented 3D secure?
In the world of credit card transactions, two major players, Visa and Mastercard are like behind-the-scenes conductors—working with banks and institutions to keep your financial experience smooth.
So, let’s take each one and distil how they help you in building a secure digital payment stack.
Visa Secure:
Visa has a smart move to outsmart bad guys with Visa Advanced Authorization. Their high-tech system uses the power of artificial intelligence (AI) and machine learning to quickly check lots of stuff when a customer buys something.
Imagine this digital protector looking at various aspects of a transaction to see if something doesn’t fit. It looks at how your customer pays (online, contactless, in-app, or via chip/magnetic stripe), what they usually spend on, and anything unusual like buying at a strange time or a big amount. Based on this analysis, it assigns a risk score, a sort of fraud-o-meter ranging from one (least risk) to 99 (highest risk). This score is then sent to your bank, which decides whether to give the green light to the transaction or not.
Visa’s system works really well—it has a tiny 0.1% global fraud rate, much less than two decades ago, even with lots more buys.
Mastercard Identity Check:
Mastercard has rolled up its sleeves by replacing Mastercard SecureCode with more rigorous Mastercard Identity Check program. It uses EMV 3-D Secure technology. It’s a bit like a multi-layered security blanket for your transactions.
Imagine this program as a digital detective using smart tech to check loads of transaction details in real-time. It doesn’t just look at the basics – it also checks screen brightness, how your customer moves, their buying history, and what the store and card company think. It’s like having a cyber detective watching your customer very closely.
If a transaction raises an eyebrow, Mastercard’s system might ask for additional proof to make sure it’s really your customer buying. This could be something like biometrics—fingerprint or facial recognition—or a single-use password sent to their phone. It’s like adding an extra layer of protection, making sure it’s really your buyer.
This is super important, especially for online purchases where the card isn’t physically present. The EMV chip and secure token thing add another layer of protection.
Visa and Mastercard, each with its unique approach, make it a point that your transactions are convenient and highly secure by employing the latest in AI and technology.
Differences Between Credit Card/Debit Cards:
As you might already know, credit and debit cards from these major issuers generally follow similar security protocols. Both use EMV chips and use additional security measures like CIDs for online transactions. However, credit cards may offer you additional protections, such as $0 liability coverage, which can also vary among issuers. For example, Visa doesn’t provide it on some commercial and prepaid cards.
Although both credit and debit cards share the ultimate goal of frictionless transaction process for its users, credit cards often come with extended fraud protection layers. Additionally, debit cards, being directly linked to your bank accounts, may lead to direct loss of funds in case of unauthorized transactions.
And a safe way to protect yourself or your business without stressing too much over the possibilities of damage: is choosing a system like Market-Leading & Compliant Payment Security With FastoSafe.
Which E-Commerce Payment Providers Support 3D Secure?
Now that you know the ins and outs of 3D Secure , let’s look at some of the Ecommerce Payment Processors who provide this feature. These platforms help you in creating a trustworthy environment for both: your buyers and yourselves.
Let’s decode the specifics of various e-commerce payment providers –
3D Secure on Square
Square takes online payment security up a notch with 3D Secure (3DS).
What sets Square apart is its global outlook. It’s not just about ticking compliance boxes – it’s about letting merchants, like you, verify buyers in countries where Strong Customer Authentication (SCA) isn’t a must. This flexibility is what helps it in catering to a diverse user base.
Pairing up with its in-house Risk Manager, Square’s 3DS adds muscle to fraud monitoring. This is what helps Square in stronger fraud monitoring – complete with customizable rules, alerts, and the ability to block sketchy cards, emails, and IP addresses.
Thanks to machine learning, it’s a high-tech protection against modern payment fraud.
Here’s how 3D Secure kicks in Square: It is triggered by conditions outlined in the Square Risk Manager Glossary. If you’re a merchant in a region where SCA is not mandatory, you can still opt into 3DS in Square. This helps it in managing fraud for you in your region. So, you should go for it to increase security for online transactions.
One thing for you to note is: 3DS and Risk Manager in Square work hand in hand but do their own thing. They offer security based on where and how transactions happen (in-person or online or a combination of the two).
For your customers, the 3DS process is transparent. Whether it’s a one-time passcode, a biometric scan, or a quick visit to their card-issuing bank, it’s a breeze. However, how this process looks visually depends totally on your buyer’s card issuer.
Now, let’s talk liability. Square makes sure that in most cases, the headache of fraudulent chargebacks shifts from you to the card issuer. This is a big deal, isn’t it? Afterall, you want to worry more about expanding your business.
So, we can say: Square’s 3D Secure goes beyond compliance. From global flexibility to a shift in liability and seamless integration with Risk Manager, Square makes sure merchants like you, not only play by the rules but stay ahead in the world of secure online payments.
Leveraging 3D Secure with PayPal
Just like Square, PayPal’s 3DS is also very effective in keeping you safe. Let’s understand how–
PayPal’s Payflow, employs a strong three-domain security model. From the issuer domain, acquirer domain, to the interoperability domain, this model is what keeps you and your buyers safe, through secure interaction between all the three parties involved.
And if you had a successful 3D Secure authentication, it will shift the liability for fraudulent chargebacks from you, merchant, to the card issuer. Do not just assume for everything it will, it allows automatic liability shifting only for certain status codes. So, you need efficient chargeback monitoring when using PayPal.
What’s more is: it is ideal for global operations.
Not only that, If you’re PayPal’s Payflow user – the payment gateway of PayPal – you have two integration paths for 3D Secure.
Here’s a word of caution: though the Payflow Buyer Authentication service offers simplicity, it’s getting outdated and old. So, consider a third-party merchant plug-in for 3-D Secure v2.0 support.
PayPal’s provides you options to customize as per your business needs. You can choose between its payment gateways – Payflow Link or Payflow Pro.
Payflow Link, cost-efficient and PCI-compliant, would suit you if you’re seeking simplicity. But if you’re looking for full customization and something which allows you to create a fully-unique checkout experience, then choose Payflow Pro.
This may seem technical, but important for you to know: PayPal’s 3D Secure integration includes built-in contingencies. Merchants, like you, can include verification attributes like SCA_ALWAYS or SCA_WHEN_REQUIRED for flexibility. This allows you to trigger 3D Secure based on specific transaction needs.
PayPal is one step-ahead in upgrading 3D Secure for compliance with 3DS2 and PSD2 Strong Consumer Authentication. And this forward-looking approach is what makes it stand out with merchants, like you, who can adapt to changing regulatory requirements quickly.
Implementing 3D Secure in WooCommerce
WooPayments, by WooCommerce, efficiently integrates 3D Secure, into your WooCommerce online store. Here’s a simplified breakdown for you:
WooPayments supports 3D Secure on both: the checkout page and the Pay For Order page, ensuring a smooth transaction experience directly on your store. They even let you test it out with a special card to make sure it works like a charm. No surprises, just a secure shopping experience.
And guess what? Your store can go global with WooPayments as it supports 135+ currencies! So, you have it all covered. Additionally, everything happens right there on your store’s dashboard— all your transactions in one place. It’s like having your financial command center.
WooPayments isn’t only about your payments. It’s about giving your customers choices. They can pay however they like, from WooPay to Apple Pay and even Google Pay. More options mean more happy customers.
What’s more? WooPayments offers detailed deposit information, quick refunds, and convenient sorting options, making it super easy for you to stay on top of chargebacks, disputes, and refunds.
And this is not all, there are features like buy now, pay later to increase your customer’s order value.
So all in all, WooPayments stands out for its user-friendly integration of 3D Secure. The only drawback is it will only integrate with WooCommerce.
Ensuring Security with 3D Secure on Shopify
Like others Shopify with its native platform ShopifyPayments has built in 3DS feature. So you have verified transactions each time someone buys from your website.
And don’t worry about 3D Secure versions —Shopify Payments supports both 3DS 1.0 and 2.0, according to the preferences of your buyer’s bank.
And when your customer goes through the 3D Secure process, you can easily check the details on the order page under “3D Secure Authentication.” It’s all neatly laid out for you.
If your business or your buyer is in Germany, Denmark, Ireland, the Netherlands, Austria, Belgium, Sweden, Spain, or the UK, compliance is automatic. However, if your customers are situated in European Economic Area (EEA) and the UK—some extra steps are required like using Cardinal, which is a 3D Secure provider that integrates with many third-party payment gateways on Shopify.
Important to note for you is: Shopify Payments is optimized to reduce the use of 3D Secure and it will only use it when it’s absolute necessity for the issuing bank to complete the transaction.
Unlike some processors, Shopify Payments keeps it simple for you. That’s because 3DS activates only when necessary, balancing security and a hassle-free checkout.
3D Secure Integration with Stripe
Stripe is no slouch—it supports both 3D Secure 2 and automatically shifts to 3D Secure 1 when needed. This adaptability makes your payment journey smooth, secure and also ticks all the boxes for regulatory requirements, especially Strong Customer Authentication.
Stripe’s intelligent system triggers 3D Secure: Based on various factors like regulatory requirements, Radar rules, issuer soft declines, and manual API requests.
But and it’s a big but: not all transactions through it support 3D Secure like in cases of wallets or off-session payments.
Now based on where and when 3D Secure is required and necessary, it begins the verification flow by communicating with the card issuer’s 3D Secure Access Control Server (ACS). What this process involves is basically checking the result of the verification. The outcome of this conversation decides the fate of your payment—smooth sailing or a pitstop for additional customer steps.
Stripe lets users decide: When to ask customers for extra verification through 3D Secure. It’s flexible, especially for advanced users working with fraud prevention.
On the Stripe Dashboard, default Radar rules make sure there’s a strong defense against potential risks. If you have Radar for Fraud Teams, you can add custom 3DS rules for extra protection.
Another cool thing is it simplifies the display of the 3D Secure flow for users, whether on the web, iOS, Android, or React Native platforms. It’s like the amazing friend who knows when to pop up with a helpful suggestion.
Now, let’s talk disputes. Stripe plays by the rules with the liability shift game.
Stripe shines bright amongst online payment processors – for its security and regulatory compliance along with for being user-friendly. Its flexibility and user control set it apart, making it the go-to choice for businesses wanting both a secure and smooth payment solution. Read more about Stripes payment processing fees for both low- and high risk merchants here.
Reasons For Common 3D Secure Authentication Failures
The need for a secure and glitch-free checkout experience led to the emergence of 3D Secure Authentication. While this extra layer of protection is great overall but when you look closely: you might find yourself caught in the web of authentication failures, disrupting your payment flow.
Let’s understand what or who are the culprits behind these glitches and find practical solutions, together.
Common 3D Secure Authentication Failures & Solutions
1. Incomplete Transaction Data
Like it is said: the devil is in the details. If there are inaccuracies in your transaction data, especially when dealing with bulk orders, be wary because it can trigger authentication failures.
So, best way to deal with it is to implement data validation processes which make sure every tiny-winy bit of information is accurate.
2. Compatible E-commerce Platforms
Well if you are a merchant relying on many e-commerce platforms, chances are you may encounter compatibility issues with some of them.
Here’s a tip: Make sure your chosen platform aligns with the 3D Secure framework. That’s why it’s always advisable to go for established platforms like FastoSafe which can consolidate this process and you can be less worried about compatibility.
3. System Lag and Outdated Protocols
It’s mostly your systems which bear the brunt of outdated 3D Secure protocols.
So, in order to avoid this: regularly update your payment gateway and systems to be in league with the latest standards of verification. This will even reduce the risk of system lag. That would be wonderful, we bet!
4. Network Vulnerabilities in High-Traffic Scenarios
High traffic can sometimes overwhelm your networks. Yes, it hurts, but it happens.
What you need to do is: Protect your network infrastructure to handle peak loads during sales or promotions. And for this you should partner with reliable network providers so you can maintain your online presence without potential transaction glitches.
5. Insufficient Fraud Detection Measures
The battle against frauds is ongoing.
So, you should employ advanced fraud detection systems to differentiate between legitimate and suspicious activities. You can do so by integrating tools like FastoSafe into your fraud prevention tool-kit to protect yourself from fraudsters.
6. Customer Education Gaps on 3D Secure Enrollment
A common woe for merchants, like you, is customers unaware of or unwilling to enroll in 3D Secure, especially if your customer is based in a region where it’s not necessary.
Go ahead and bridge this knowledge gap by educating your customer base on its benefits. You can also make it easier to convince them by using user-friendly platforms.
7. Cart Abandonment Due to Prolonged Authentication Time
If you’re grappling with the challenge of cart abandonment, it might be due to prolonged authentication processes. This could be also the thing hurting your 3DS.
So, instead improve your verification flow to minimize delays. An easy, quick 3DS process would encourage your customers to complete their purchase journey without abandoning their carts.
Get 3D Secure Payments With FastoSafe
Integrating 3D Secure isn’t just a best practice for your business security and building your customers trust. Rather, it’s about creating wonderful user-experiences. And striking this right balance: between security measures and user-friendliness means smooth checkout process.
That’s why choosing the right payment gateway becomes so important for your business’s success. And platforms like FastoSafe go beyond the basics, offering you complete solution to your problems. When you choose your processor, remember you are investing in your business’s future. Because 3DS instills confidence and convenience for both: you and your customers.
But, why choose FastoSafe? Not because it’s the Iron Man suit for your transactions, no pun intended. But then why? Because FastoSafe makes the entire process like a walk in the park.
It’s more than a security measure; it’s a promise. A promise to protect your transactions, your merchant account, and, dare we say, your reputation. In a world where every chargeback and fraud attempt leaves a mark, FastoSafe emerges as the brush that paints a picture of resilience.
What sets FastoSafe apart is the blend of technology with real-time intelligence. It’s isn’t about 3D Secure alone – it’s about securing your business with AI-powered fraud screening, blacklisted database checks, and 3DS verifications when available. It uses technologies like Ethoca and Verifi, so you gain insights into the reasons behind everything. And yes, you can use these to improve your business and customer satisfaction. Isn’t that amazing?
Here’s to transactions that are not just secure but also effortlessly delightful!
So, why settle for anything less, right?
Choose FastoSafe, where 3D Secure is not just a feature; it’s a trust in every transaction.
