Photo Credits: Rapyd
3D Secure (3DS or Three Domain Secure) is a technology developed by Arcot Systems, which is a security protocol for online transactions using credit cards to avoid fraud. You do this by confirming or authenticating the credit card holder in the form of receiving an OTP (One Time Password) to biometrics.
So, when someone makes a shopping transaction on an online site and makes a payment using a credit/debit card, this is where the system will send a confirmation or authentication, which is usually sent to the card owner’s email or mobile number only.
Card users will be directed to a page containing the password/code/pin fields that must be filled in. This is known as Verified by Visa for Visa card users, MasterCard SecureCode for MasterCard card users, or Safekey for American Express card users.
In this way, it is hoped that 3D Secure can protect the security of transactions in your online store business. This security service has been recognized internationally as a form of security standard that must be owned by all e-commerce and marketplaces.
It is undeniable, online transactions do have the risk of hacking so that your customer data can be taken and misused. The number of credit cards that have been hacked using various methods has also been widely reported, therefore a security system with 3D Secure is implemented to protect and prevent this from happening, prevent payment fraud, prevent unauthorized transactions, and can reduce chargeback transactions.
With the benefits offered by 3D Secure, make sure the credit card you have has activated this service. Usually, the 3D Secure service will be activated automatically when applying for a credit card, with the email data and mobile number that you have entered beforehand. And looking at how fast the technology goes, it’s important to set up automatic payments. If in doubt, ask directly the bank that provides your credit card service. 3D Verification that is done when paying using a credit card includes:
● Card Verification Value (CVV). The three-digit number that you can find on the back of your credit card to make sure that you are the true physical cardholder.
● Address Verification System (AVS). This requires credit card users to write down the billing address when making payments. Then the system will match the billing address written with the billing address on the card. If both match, then the transaction will be approved for processing.
● One Time Password (OTP). It will be sent via short message (SMS) to the pre-registered mobile number. So this really ensures that the person using the credit card is you as the real credit card owner.
For every online transaction, the bank will automatically send an OTP verification code via SMS or Whatsapp, and you must enter the code/pin/password at the last step of your online payment.
For you online business owners, integrating with a payment gateway service system is the right solution so that your customers can make online payments by credit card. A trusted payment gateway will automatically implement the 3D Secure technology so that all your online business customer transactions are protected.
Not only credit cards, but your online business can also accept payments from various other methods such as e-wallets, QRIS, Paylater, and many others when you join a payment gateway.
After long years of development, the developers finally came in with the newest version of 3DS called 3DS2. The newest version of 3DS has some additional features that are worth noticing, such as:
After the initial version of 3DS has been around for more than 16 years, 3DS2 finally came in with the frictionless flow, which is often seen to be the biggest improvement made for the protocol.
With this feature, the issuers are now able to approve the transactions even without the input put in by the cardholder. This eliminates the annoying pop-ups, and the need to remember passwords, effectively removing the obstacles.
The second version of 3D Secure opens up more opportunities, even more than online transactions. With the additional authentication feature, the cardholder can be automatically
authenticated even without making a purchase. The process of adding credit cards to wallets will be much faster this way.
The previous version of 3D Security lacks integration with mobile devices. As consumers grow on the phones more, the new 3DS2 has added support for integrating the protocol inside the mobile apps. That way, the checkout process on phones will be faster and feel so seamless.
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