3D Secure V2 Explained

The online world of making and receiving payments is one that is filled with risks. There are hackers out there who are constantly attempting to steal our payment details. So, in an attempt to prevent or reduce fraud, the 3D Secure V2 offers a vastly improved version, aiming to provide consumers with a seamless shopping experience. Therefore, they will benefit from speed and ease while benefiting from the enhanced security that 3D 2.0 has to offer.

Through a multi-factor authentication process, which once set up, will make transactions online a breeze for consumers. Along with this, merchants can also benefit from enhanced confidence knowing that the risks have been reduced. So, this leads to a consumer who knows that they are not at risk of fraud and a merchant that can turn to the bank should any issues with payment arise.

Fix 3d secure issue paypal stripe woocommerce opencartSo, on September 14th 2019, new rules are being implemented for any transaction that takes place between the issuing bank and the merchant acquirer who is based in the European Economic Area. Therefore, all transaction will have to be authenticated using two of three possible factors. This will include something that you have which will be the credit card, something that you know which could be the pink number and something that you are, which could be a biometric ID such as a face scan or thumbprint.

So, the process will then involve three domains. These are the issuer domain, which is the bank of the card that is being used. The acquirer domain, which will be the bank of the merchant to which the payment is being made and the interoperability domain, which is the 3D-secure infrastructure which is proved by the credit card company.

Therefore 3D Secure 2.0 has been designed to meet the requirements of Strong Customer Authentication and this will apply to all offline and online transactions.

The Benefits

Merchants will be able to offer a service that is consistent across a number of payment platforms and digital media. As a result, the consumer will have a better experience and it will reduce the 3D-Secure issue of high cart abandonment rates.

Issuers can improve ‘frictionless authentication’ through richer data exchanges that enable better decision for risk assessment in order to challenge the cardholder or not. Cardholders will also have the option of choosing their preferred medium when making purchases.

Consumers will benefit from an enhanced service whatever device they are using to make payments.

So, as online fraud is continuing to rise as well as cybercrime, 3DS 2.0 will soon become a standard when it comes to e-commerce fraud prevention. It will become an expectation of consumers and so, payment gateways must offer it and merchants should look to address the problem sooner rather than later. The statistics show that fraud is not going anywhere anytime soon and so, for those merchants who want the very best conversion rates and protection from fraud then now is the time to adopt 3DS 2.0.

If you have been using any payment gateways to take credit card payments such as Stripe / Paypal / Sagepay there is a good chance you need to update your code. Feel free to get in touch to see how we can help secure your online payments / ecommerce / woocommerce 

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