3D Secure (3-Domain Structure), also known as a payer authentication, is a security protocol that helps stop credit and debit card fraud in its tracks. It was originally developed by Visa and MasterCard and is called “Verified by Visa” and “MasterCard SecureCode,” respectively.
A merchant enables the technology on its website, and when a customer uses a card that is a part of the 3D Secure program, the following happens:
#1 – The customer enters his or her credit or debit card info in the payment processing form.
#2 – SecurionPay contacts a directory server and is notified if the card is in the program.
#3 – The customer sees the 3D Secure page and then has to enter a password or one-time PIN to authenticate themselves.
#4 – The result of the 3D Secure Authentication goes to SecurionPay and transaction details are submitted to the acquiring bank.
#5 – The transaction is authorized.
#6 – The customer is quickly notified as to whether or not the transaction went through or failed.
As incidences of credit card fraud have grown over the years, card companies have been trying to find ways to protect banks, consumers, and merchants. The beauty of 3D Secure is that it reduces fraud and makes shopping online much safer. Plus, it does wonders for brand loyalty, as it’s so easy to use.
A growing number of merchants have reported that consumers who use 3D Secure tend to spend more money, as they are more comfortable during the checkout process.
Yes, 3D Secure does have some limitations. First and foremost, not all cards are participating in the program. Secondly, it doesn’t stop chargebacks from happening, but it does reduce the cost of fraudulent chargebacks.
In fact, liability usually shifts to the acquirer and the retailer is protected. Thus, 3D secure is an additional layer of protection for both the consumer and the merchant.
While some customers do want assurances that their transactions are secure, they don’t like to go through extra steps for confirmation. Thus, you may need to explain why you are using 3D Secure and how it will protect them.
For example, you can provide clear information in the early states of the checkout process. You can explain how it works and let customers know they’re going to go through extra steps.
Also, you can remind them the extra charge doesn’t cost anything and there aren’t any hidden fees. You can even provide your customers a link to give them more info. Also, you’ll definitely want to display Verified by Visa and MasterCard SecureCode logos.
A growing number of credit card companies are joining the program including the following:
3D Secure is the most current fraud prevention program that provides greater safety for consumers, merchants, and banks. If you’re on the fence, you may want to demo the technology and consider giving it a test to see how it affects your bottom line. You can never do to much to ensure that the transaction process is safe and secure.
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