3D-Secure

3D-Secure (Three-Domain Secure) is an online payment security protocol designed to reduce fraud and provide an additional layer of authentication for online transactions. It involves three domains: the merchant's acquirer domain, the card issuer domain, and the card networks such as Visa or Mastercard. When a customer makes an online purchase, 3D-Secure requires them to complete an additional verification step with the card issuer, typically through a password, biometric authentication, or a one-time passcode sent over SMS. This process ensures that the cardholder is indeed the person making the transaction.

How 3D-Secure Works

3D-Secure consists of several steps involving both merchants and card issuers to allow customers to be authenticated during online purchases:

1. Payment Initiation: When a customer initiates an online purchase and enters their card details on the merchant's website, the merchant recognizes that the card is enrolled in 3D-Secure and triggers the authentication process.

2. Redirect to Issuer: The customer is redirected to a web page hosted by their card issuer where the customer is asked to authenticate themselves. This can be done through various methods, such as entering a static password, a one-time password (OTP) sent over SMS, or using biometric authentication (e.g., fingerprint or facial recognition).

3. Transaction Completion: If the authentication is successful, the merchant processes the authenticated transaction and the customer is redirected back to the merchant’s website with a confirmation of their purchase. If the authentication fails or is not completed, the transaction is typically declined, and the customer is informed of the failure.

Benefits of 3D-Secure

Implementing 3D-Secure for online payments provides several benefits for both merchants and customers, enhancing overall transaction security and achieving regulatory compliance:

Reduced Fraud: By requiring an additional authentication step, 3D-Secure significantly decreases the risk of unauthorized transactions. This added security measure helps to ensure that the person using the card online is the legitimate cardholder.

Liability Shift: One of the key advantages for merchants using 3D-Secure is the liability shift. If a transaction is authenticated using 3D-Secure and later turns out to be fraudulent, the liability for the chargeback shifts from the merchant to the card issuer. This can result in substantial cost savings and reduced chargeback rates for merchants.

Regulatory Compliance: With the increasing emphasis on online transaction security and regulations such as PSD2/SCA in Europe, implementing 3D-Secure helps merchants comply with these regulations and avoid potential fines and penalties.

How to get started

Evervault provides a set of easy-to-use APIs designed to let you perform 3D-Secure Authentications in minutes without having to integrate directly with the card networks. To assist you in getting started, we've prepared a series of quick start guides. These guides are designed to walk you through each step of the 3D-Secure Authentication process, ensuring a smooth and efficient setup.