What Is 3D Secure And How Does It Work?

In order to prevent fraud, 3D Secure is an authentication technique that adds an extra layer of security to credit card transactions. You can choose to have 3D Secure added on each time an online credit card transaction is conducted. 

The three parties involved are the card issuer, the shop that receives the payment, and the 3D infrastructure platform, which serves as a safe intermediary between the customer and the store.

How Does 3D Secure Work?

An extra degree of protection for online transactions is offered by the multistep, multiparty 3D Secure method. A dependable and efficient authentication system can be created by completing each of these procedures.

 We’ll go over each crucial step of the procedure in detail below.

1) Start Of A Transaction

Normally, when a consumer enters their credit card information on the company website. The server of the company now detects the requirement for 3D Secure authentication and makes a request to the acquirer, the bank that handles the company’s credit card transactions.

The server decides if 3D Secure is required based on the transaction’s nature and the card issuer’s restrictions, so the business is crucial to this phase.

2) Authentication Request

The card network, usually Visa or Mastercard, receives this request from the acquirer and passes it to them in order to enable communication between the issuer and the acquirer.

A successful or unsuccessful transaction may depend on prompt and accurate communication between the acquirer and the card network.

3) Procedure For Authentication

The authentication request is sent to the card issuer when the card network has identified it. Next, the card issuer requests more information from the cardholder, typically via an in-app interface or pop-up window.

4) Verification Or Rejection

A key stage in the transaction procedure. The issuer verifies the information provided by the cardholder in order to authenticate the transaction. The acquirer then notifies the firm after receiving a response from the issuer via the card network.

The transaction is approved upon a successful authentication. On the other hand, a negative answer may lead to the cancellation of the transaction.

5) Completion Of The Online Transaction

Ultimately, the business completes the transaction and delivers the products or services if the issuer verifies the cardholder’s identification.

The Advantages Of 3D Secure

3D Secure provides the following advantages to retailers:

• Shift in Liability:

As you are aware, you are normally responsible for this transaction when there is a chargeback. The obligation is transferred from you to your issuing bank when you use 3D Secure.

• Benefits Related to Interchange:

You can be eligible for reduced interchange costs and longer payment periods with your acquirer.

• Confidence In Customers:

This is essential. Knowing that there is an additional layer of protection in place to protect their data will give many customers greater confidence.

• Adherence To Legal Requirements:

Businesses find it challenging to stay up to date with the regular updates made by regulatory organizations to their standards. Using 3D Secure can assist you in maintaining compliance and avoiding costly penalties and legal issues.

How 3D Secure Can Help You Stay Safe

If the legitimate cardholder files a chargeback with their bank and you wind up shipping items because the payment was fraudulent, your business will suffer. A chargeback is a reversal of a transaction in which the cardholder receives their money back.

By usually requesting a secure PIN, 3D Secure confirms that the individual making the payment is the legitimate owner of the credit card being used. To finish the authentication process, the cardholder is taken to a page on their bank’s website for verification.

Finishing this verification lowers the possibility of chargebacks and increases your chances of winning disputes in the event that chargebacks do occur.

Conclusion:

How can you be certain that the individual at the register inputting your card details isn’t using a fraudulent one? 3D secure is that it provides an extra layer of protection to lessen the possibility of card details being stolen and misused online. It guards against chargebacks for any unlawful transactions.