Visa 3-D Secure (3DS) is a security protocol designed to add an extra layer of protection to online credit card transactions.It aims to reduce fraud by verifying the cardholder’s identity before the transaction is authorized.Visa’s implementation of 3DS is called “Visa Secure.”
Here’s how it works:
Transaction Initiation: When a customer makes an online purchase with their Visa card, the merchant’s website communicates with the Visa network to initiate the 3DS process.
Risk Assessment: The issuer (the cardholder’s bank) performs a risk assessment based on various factors, such as the cardholder’s history, the transaction amount, and the merchant’s risk profile.
Authentication: If deemed necessary, the issuer challenges the cardholder to authenticate their identity. This usually involves a step-up authentication method, such as:
One-time password (OTP): Sent to the cardholder’s registered mobile phone or email.
Biometric authentication: Fingerprint scan or facial recognition.
Knowledge-based authentication: Security questions or personal information.
Verification: Once the cardholder successfully authenticates, the issuer confirms their identity to the merchant.
Transaction Completion: The merchant can then proceed to process the transaction with increased confidence that the cardholder is legitimate.
Integration and Implementation:
Merchants need to integrate 3DS into their online payment systems.This typically involves working with their payment gateway provider or acquiring bank to implement the necessary APIs and protocols.Visa provides detailed documentation and support for merchants to integrate Visa Secure.
Benefits and Features of 3DS:
Reduced Fraud: By verifying the cardholder’s identity, 3DS significantly reduces the risk of unauthorized transactions and chargebacks.
Improved Security: Adds an extra layer of security to online payments, protecting both merchants and customers from fraud.
Shift in Liability: In many cases, if a fraudulent transaction occurs after successful 3DS authentication, the liability shifts from the merchant to the issuer.This can save merchants significant costs associated with chargebacks and fraud disputes.
Increased Customer Confidence: Demonstrates a commitment to security and builds trust with customers, encouraging them to complete their purchases.
Enhanced User Experience: The latest version of 3DS (EMV 3DS 2.0) offers a smoother and more user-friendly authentication experience, minimizing friction during checkout.
Support for Mobile and Digital Wallets: 3DS is compatible with various payment channels, including mobile devices and digital wallets, providing a consistent and secure experience across all platforms.
In conclusion: Visa 3-D Secure is a powerful tool for merchants to enhance the security of their online transactions, reduce fraud, and improve customer confidence.
By implementing Visa Secure, merchants can protect themselves from financial losses and provide a safer and more trustworthy shopping experience for their customers.
For e-Commerce Electronic Payments set up with 3D Secure
