3D authentication

What Is 3D Secure?

 

3D Secure (3-domain structure), also known as a payer authentication, is a security protocol that helps to prevent fraud in online credit and debit card transactions. This additional security was initiated and created by Visa and MasterCard and it’s branded as ‘Verified by Visa’ and ‘MasterCard SecureCode’ respectively.

The payer authentication is a three-part process, so there are three parties involved in the process: the issuer (such as Visa or MasterCard), the acquirer, and the interoperability domain (such as payment system).

Advantages of 3D Secure

One of the advantages of 3D Secure is that it reduces fraud. It also makes shopping/commerce safer online, nourishes brand loyalty, it is easy to use, customer confidence improves on websites and therefore increases spending online.

Service Restrictions

3D Secure has certain limitations: first, not all cards are currently participating in the program authentication payer scheme and secondly, it does not restrict chargebacks to happen but reduces the cost of fraudulent chargebacks.

Chargeback Liability of 3D Secure

As regards to chargeback liability, 3D Secure should be seen as an additional layer of protection provided by the card issuer. In fact, in the case of a fraudulent transaction, it becomes authenticated through 3D Secure, is very likely that liability will shift to the acquirer. In short, retailers are protected against misleading chargebacks since the liability is transferred.