What is 3D Secure?
3D Secure is an authentication protocol used for online card payments to add an extra layer of security. After entering card details, the customer must complete an additional verification step, such as entering a one time passcode or approving the transaction through a banking app.
Why is 3D Secure important?
It reduces fraud in card-not-present transactions by confirming that the person making the payment is the legitimate cardholder. It also shifts liability for certain fraudulent transactions away from merchants when authentication is successful.
How does 3D Secure work?
When a customer initiates an online payment, the transaction is sent to the card issuer for authentication. The issuer may request additional verification, such as a code sent to the customer’s phone or biometric confirmation through a banking app. Once verified, the transaction proceeds.
What is the difference between 3D Secure 1 and 3D Secure 2?
3D Secure 2 improves user experience and security. It supports mobile devices, reduces friction by allowing risk based authentication, and enables biometric verification. The earlier version relied more heavily on static passwords and redirects.
Does 3D Secure affect conversion rates?
It can introduce friction, which may reduce conversion if not implemented carefully. However, modern versions reduce disruption and improve approval rates by increasing trust and reducing fraud declines.