3D Secure,Everything You Need to Know About 3DS2 (3D Secure 2.0) An authentication mechanism called 3D Secure 2.0 seeks to lessen fraud and increase security for online card payments.Due to the digital acceleration caused by the epidemic, eCommerce has experienced significant growth over the past few years and has achieved all-time highs both in the UK and abroad.According to Statista, in 2020 more than two billion consumers will make online purchases totaling more than $4.2 trillion.Online fraud is on the rise along with the amount of online sales.According to Statista, there were 62,868 consumer scams registered in the UK in the first half of 2020, of which almost 65% (41,000) involved online shopping and auction fraud.Effectively combating fraud is a significant priority for both businesses that want to preserve their online revenue from fraudsters and consumers who use more online payment methods and are worried about protecting their hard-earned money.
Everything You Need to Know About Top 3D Secure In 2022
The Everything You Need to Know About Top 3D Secure In 2022 is as following:
Strong (two-factor) authentication is performed by default using the industry authentication standard. It attempts to lessen fraud and improve security for card payments made online.The protocol, which enabled a more frictionless payment flow across various devices, was released as an improved version of the previous 3DS protocol.Three-Domain Secure is referred to as 3DS.In order to assist merchants and issuing banks in validating cardholder identities while making purchases online, Visa developed the authentication protocol in 1999.The three domains are the issuer domain (the bank that issued the cardholder’s card), the acquirer domain (the merchant and the bank to which the money is paid), and the interoperability domain (the infrastructure used by the card scheme to enforce the 3DS protocol, i.e. the Internet, the Merchant Plugin, and the Access Control Server (ACS)).Without interfering with their online experience, customers may validate their identities.The checkout procedure is also more fluid and streamlined on the merchant’s website.
As a sophisticated layer of fraud prevention, D Secure examines more than 100 important data points, including the merchant’s contextual information.At the checkout, the cardholder inputs their card information.At this stage, the issuer receives an authentication request with rich data from the merchant’s 3D Secure service provider.Depending on regional or market legal limits, this data may also comprise other types of cardholder and device information, such as device ID, MAC address, geo-location, prior transactions, and more.The service provider for the issuer then evaluates the transaction risk.If the transaction is deemed to be high-risk, a challenge is presented.In other words, it requests the cardholder to use biometrics and/or two-factor authentication, such as a one-time password, a fingerprint, etc., to confirm their identity.The cardholder doesn’t need to take any additional action if the transaction is determined to be low-risk.The merchant submits the transaction for authorisation along with a flag reflecting the authentication result after receiving the authentication result from the issuer.
Most significant card systems support the standard.The card schemes’ branded names, such as Visa Secure, Mastercard Identity Check (formerly known as SecureCode), American Express SafeKey, J/Secure for JCB cardholders, or ProtectBuy for Diners Club International/Discover, are the ones that consumers are most likely to recognise.
Merchants who wish to implement can receive assistance from payment service providers.In order to enable 3D Secure 2 via our payment gateway, emerchantpay, an end-to-end payment service provider, may offer a number of alternatives tailored to your particular needs.Please contact our team here for additional details on 3D Secure 2 authentication and enabling.Contact your account manager to enable, activate, and setup 3D Secure 2 transactions for major card schemes with our tech support team before you can begin accepting 3D Secure 2 authenticated transactions.
Merchants who wish to implement 3D2S can receive assistance from payment service providers.In order to enable 3D Secure 2 via our payment gateway, emerchantpay, an end-to-end payment service provider, may offer a number of alternatives tailored to your particular needs.Please contact our team here for additional details on 3D Secure 2 authentication and enabling.Contact your account manager to enable, activate, and setup transactions for major card schemes with our tech support team before you can begin accepting 3D Secure 2 authenticated transactions.The improved version of 3D Secure 1 is 3D Secure 2.The inclusion of more frictionless authentication and the improvement of the user experience across devices mark the primary differences between 3DS2 and its predecessor.The only devices that could be used for online purchasing at the time Visa developed the protocol in 1999 were PCs.Because cellphones were not yet widely used, the original version was created for desktop browser authentication.Some issuing banks further mandated that cardholders sign up for the service by connecting a static password to their payment card.With this additional safeguard, the merchant’s whole obligation is shifted to the issuing bank.However, it had certain shortcomings.
Due to the absence of native in-app and mobile processes in 3DS1, customers frequently abandoned the payment flow.Static passwords were challenging to remember, which increased friction and added operating expenses for issuers because users had to contact support to have their passwords reset.The worldwide standard for card authentication, 3D Secure 2, has been upgraded and fixes some of the issues of 3D Secure 1.A more uniform user experience across devices and extensive data interchange to stop fraud and lessen friction are some of its main advantages.In reality, the 3DS2 protocol from Visa completely interacts with the checkout process at the retailer to facilitate a smooth payment flow for the customer.The majority of the authentication activity’s phases take place invisibly in the background, away from the cardholder.Visa and other major card schemes advise issuers and retailers to support both 3DS1 and 3DS2 so that stakeholders may react to each message version and enhance the number of successful client transactions.When the cardholder’s bank does not support 3DS2, 3DS1 might be used in this situation.
The alternative term for 3D Secure 2 is EMV 3D Secure.EMV 3D Secure was established in 2016 by EMVCo, an organisation governed by American Express, Discover, JCB, Mastercard, UnionPay, and Visa, to meet expanding eCommerce needs such seamless checkout, app-based verification, and digital wallet integration.The 3DS1 standards continue to belong exclusively to Visa.In relation to Mastercard SecureCode and Verified by VisaThe card programme was known as “Verified by Visa” when Visa initially created and released 3DS1.Verified by Visa contributes to ensuring that secure online transactions are made by the legitimate cardholder of a Visa card.The software uses the 3DS to authenticate a payment behind the scenes.
The Verified by Visa-specific static password was used by Visa cardholders to verify themselves during 3DS1 transactions.Beginning in early 2018, Visa stopped supporting static passwords, allowing issuers to verify cardholder identity using their preferred authentication technique, such as a one-time password (OTP), biometrics, etc.The current name of Visa’s 3DS2 solution is Visa Secure.The “Secure Payment Application” authentication standard that Mastercard created was quickly dropped.Instead, the 3DS 1 protocol—branded “Mastercard SecureCode”—was used.”Mastercard ID Check” is the name of Mastercard’s 3DS2 solution.Typically, after a transaction initiates 3DS2, the customer may be sent to their mobile banking app to confirm their online purchase before returning to the retailer’s website to learn more about their placed order.With the progressive deployment of 3DS2 across Europe, major card schemes are delivering more user-friendly authentication procedures and giving issuers a variety of ways to confirm cardholders’ identities while making purchases online.
When the transaction cannot be completed and the consumer is not paid, 3D Secure authentication fails.The following are potential causes of a 3D Secure Authentication failure:The customer failed authentication because they entered incorrect 3D Secure information.During a 3D Secure transaction, the consumer is sent to a website managed by the issuing bank where they can input their 3D Secure pin or respond to extra security questions, such as an OTP.The transaction cannot be executed through the merchant’s account if the erroneous information is entered during authentication.The issuing bank for the customer does not accept 3D Secure authentication.Instead of using 3D Secure, banks internationally may adhere to various authentication standards.The rule cannot distinguish between issuers that are a part of 3D Secure and those that are not when 3D Secure authentication is used by default for every transaction.During the authentication process, 3D Secure has a technical problem.There may be times when the 3D Secure protocol is unavailable, making it impossible to authenticate and perform the transaction.
A strong authentication technique, 3D Secure 2 offers both consumers and businesses a number of advantages.The two most often occurring advantages, along with the other advantages stated below, are improved user experience and greater security,improved in-app and across devices user experience. Comparing 3D Secure 2 to its predecessor, it is easier to use.Users can buy their goods or services and wait for the payment confirmation notification after a transaction is trusted.Users will be required to authenticate themselves using a method they are comfortable with, such as a fingerprint scan or an OTP, when a transaction is deemed suspicious.More secure payments result from rich data interchange.
Issuers may carry out Risk-Based Authentication thanks to 3DS2 (RBA).In order to analyse the risk involved for that particular transaction, this mechanism enables the transmission of over 100 data points during a transaction, including user geolocation, device ID, shipping address, and prior transaction history.With risk-based authentication, the issuers may verify the identity of their cardholders on the vast majority of transactions without requesting any further information.In essence, the authentication process goes through a challenge flow when a transaction is deemed dangerous, and the user may be asked for further verification.Less than 5% of transactions are anticipated to be escalated for extra verification, such as a one-time password, according to Visa.
The lower risk of fraud offered by 3D Secure 2 is a key selling factor.This additional security measure enables retailers to only accept card payments from legitimate consumers.It is less probable that a fraudster would have access to the cardholder’s 3DS pin or OTP even if the customer’s card number and card data were used illegally.
Fraud risks are thereby much diminished.
The chargeback responsibility transfer is 3D Secure’s main advantage.As a result, the cardholder’s bank is now responsible for chargebacks brought on by fraud rather than the merchant.Customers frequently encounter the 3D Secure challenge during high-value transactions due to this added protection.Additionally, 3D Secure 2 supports liability shift.
Different card schemes, however, determine their own guidelines for when to apply responsibility transfer when the protocol is gradually implemented.While Visa would activate responsibility shift based on the area the business is in, Mastercard has supported liability shift from October 2018.For different locations, dates span from April 2019 to April 2020.
The card schemes urged issuing banks to prepare for 3D2S in April 2019.According to PSD2 regulations, 3D Secure 2 must be used as the default authentication method for all online transactions conducted within the EU.In an announcement, Visa stated that starting in October 2022, it will no longer offer 3D Secure 1and 2 is a requirement under PSD2,In order to properly respond to this query, it is important to step back and closely examine PSD2.Strong Customer Authentication (SCA), a modern security technique that will be used to validate online payments, is introduced under PSD2.For a transaction to be successful, at least two of the following authentication factors must be used:Consumer-specific information, such as an OTP, SMS code, PIN, password, security question, etc.Something owned by the consumer,Credit or debit card, key fob, smartphone, wearable technology, etc.The customer is something like,such as a fingerprint, iris scan, face or voice recognition, or another biometric.The reliability of the other factor must remain unaffected if the reliability of the other authentication factor is compromised.Common criteria and classification examples are summarised in the tables below. It is important to remember that each PSP choose which factors to apply.
Consequently, unless the transaction is exempt, activating 3D Secure 2 meets each of the aforementioned SCA criteria.
You must use Strong Consumer Authentication (SCA) for your payments if both the card issuer and the acquirer are located in the European Economic Area (EEA).Although the official SCA enforcement cutoff date was January 1, 2021, many European markets had different standards and enforcement timelines.Every market in the EEA essentially has its own unique regulatory practises, appetite for issuer risk, and degree of PSD2 and SCA preparation.The local migration strategy for SCA enforcement in the UK and other EU nations is shown in the table below.
By providing customers with consistent online payment experiences across desktop computers, mobile devices, and tablets,is keeping up with the times.The modifications made in 3D2S will benefit retailers and boost their bottom line.Here are a few advantages for retailers and fewer erroneous declines,Issuers are better able to approve a legal transaction and lower false declines by giving them access to hundreds of crucial data points during a single transaction.
Cross-channel transactions may be accommodated by 3D Secure 2, which gives online shoppers better user experiences.Unnecessary challenge screens that impede the user’s path can be removed, increasing the likelihood that the customer will complete the purchase without leaving their basket.According to Visa, abandonment rates in UK transactions have decreased by 70% since the card programme used a risk-based strategy.
The new payment APIs are supported by emerchantpay’s browser flow, allowing you to use 3D Secure for high-risk transactions and safeguarding your company against fraud.When the cardholder’s issuer does not support 3DS2, 3DS1 is used for authentication instead.It is essential that businesses speak with their PSP before choosing the appropriate method for implementing 3DS2 as part of their SCA strategy.We urge retailers who must use 3DS2 and abide by SCA to view this as an opportunity to redesign the checkout process and improve the payment flow in order to provide the greatest possible consumer experience.To get started with, find out more about emerchantpay’s payment APIs or contact our team to go over your alternatives.
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