Skip to main content

What is 3D Secure?

Updated

Table of Contents 

  1. Overview 
  2. Understanding 3D Secure
  3. Why 3D Secure is Used?
  4. Flows of a 3DS Transaction
  5. Conclusion

Overview 

In the dynamic world of online payments, security is paramount. One technology that plays a pivotal role in fortifying this security is 3D Secure (3DS). This article aims to demystify 3DS, shedding light on its purpose, the rationale behind its use, and the typical transaction flows it encompasses.

Understanding 3D Secure

At its core, 3D Secure is a technical standard designed to bolster the security of online credit and debit card transactions. When a user initiates an online transaction, 3DS steps in, requiring the cardholder to verify their identity through a unique password, SMS code, or a temporary PIN.

Why 3D Secure is Used?

The adoption of 3D Secure in online payments is driven by multifaceted reasons:

  1. Mitigating Fraud and Chargebacks: By introducing an additional layer of authentication, 3DS significantly reduces the risk of fraudulent transactions and chargebacks.
  2. Boosting Consumer Confidence: 3DS instills confidence in consumers, assuring them that their online transactions are fortified with an extra level of protection.
  3. Safeguarding Sensitive Information: The standard enhances the protection of sensitive payment details, shielding them from potential security breaches.

Flows of a 3DS Transaction

A 3DS transaction typically follows one of two flows: Challenge Flow and Frictionless Flow.

Challenge Flow:

  • The cardholder submits their payment information.
  • The system checks for 3D Secure enrollment.
  • If confirmed, the user is redirected to the card provider's 3D Secure page.
  • On this page, the cardholder authenticates by entering a unique password or a one-time code.
  • Successful authentication leads back to the merchant's website for payment confirmation.
  • The cardholder receives a confirmation of the successful payment.

Frictionless Flow:

  • The cardholder submits payment information.
  • The system checks 3D Secure enrollment.
  • If confirmed and the card provider deems the transaction low risk, approval is granted without additional authentication.
  • The cardholder receives a confirmation of the successful payment.

In the Frictionless Flow, the absence of extra authentication steps streamlines the process, particularly for transactions assessed as low risk by the card provider.

Conclusion

In conclusion, 3D Secure serves as a linchpin in securing online transactions. Its multifaceted approach, encompassing Challenge and Frictionless Flows, strikes a balance between heightened security and user convenience. By understanding the mechanisms behind 3D Secure, consumers and businesses alike can navigate the online payment landscape with confidence and assurance.