EMV 3-D Secure (EMV 3DS) is a technology that helps detect and prevent fraudulent card payments in e-commerce transactions. It does so in a way that does not inconvenience the customer during the checkout process. By using EMV 3DS, merchants and card issuers can quickly and accurately identify potential fraud, ensuring a safe and seamless checkout experience for customers.
Better Experience for Users
EMV 3DS v2.3 improves the customer experience for customers by streamlining the authentication process for cardholders in a variety of ways.
Support for devices Binding
Device binding allows e-commerce and merchants who use cards-on-file to remember the customer’s device. On the screen for the challenge, cardholders are asked to choose whether they want to be kept in mind to make future purchases.
Instead of data from the card merchants keep the token that they later bind to the cardholder’s device. The usage of more of these devices to perform future transactions is an additional security factor.
Device binding simplifies the authentication process since it doesn’t affect the experience of shopping and eliminates the requirement to add an extra authentication process.
Automation of Out-of-Band (OOB) Transitions
OOB authentication is a common cause of the failure of transactions. OOB is a kind of authentication with two components. It is based on verification via the use of a distinct communication channel.
For instance, a consumer who wishes to purchase something on their laptop will be sent the one-time password in a text message on their mobile phone. Problems with switching between the merchant application and the authentication software could cause a transaction to fail.
The most current version of EMV 3D Secure includes automated out-of-band transitions. The site redirects automatically and thus improves the transaction performance.
Further Transaction Data
EMV 3DS now provides more information on recurring transactions. This is relevant to situations in which the cardholder has the authority to approve regular payments. One example of this is the monthly subscription.
The new features streamline the process of securing future purchases.
Merchants, issuers, and customers have greater visibility of the transaction details. Additionally, the payment is simpler to recognize and then approve. 3DS v2.3 allows for a greater variety of payment options, which include:
- A trial period for free is followed by a recurring cost
- Variable payment amount
- Variable payment frequency, based on the amount of usage
- EMV 3DS v2.3 has more EMV payment token information. It assists card issuers in making more informed decisions based on risk.
Integration of Other Devices
3DS v2.3 includes enhancements to allow for the integration of new kinds of devices. The new protocol can be used with devices that have virtual assistants (Alexa, Siri, etc.). Also, it is applicable to IoT (Internet of Things) appliances like smart TVs. The payment SDK permits the creation of payment-related applications for these devices. The earlier version of 3DS was the certification of “universal” SDKs. These SDKs allow merchants to incorporate the same SDK into their app or website to comply with data and regulatory standards. EMV 3DS v2.3 updates the SDK with the divided SDK server model, which has several variations. The split SDK separates functions into both a client and a server.
The use of a client API eases merchant integration. It lets trusted third parties obtain enhanced biometric and device information from the apps of the merchant. Third parties that are trusted include:
- Delegated authenticators
- FIDO-reliant parties
- Risk engines
- This increases the rate of approval for transactions.
Merchants and trusted third parties can utilize data instructions in clients to specify what information the SDK should be collecting. Some examples of enhanced data are:
- Device tags
- Biometrics based on behavior
- Fingerprints or facial biometrics
These features eliminate the requirement for authentication step-ups. They improve risk scoring by making it more precise. Implementing this standard on IoT devices makes buying on them safer.
A New Method of Authentication, and Fraud Prevention
EMV 3DS supports WebAuthn (Web Authentication) as well as SPC authentication. Incorporating these two methods into EMV 3DS’s EMV 3DS process helps it easier to identify fraudulent transactions.
WebAuthn
The World Wide Web Consortium (W3C) came up with WebAuthn. It is a standard to allow password-free login.
WebAuthn can be described as an API standard. It allows servers, applications websites and various systems to control the registration of registered users, without having to use a password. Methods for authentication that do not require passwords can be used to authenticate users using biometrics or possessions.
It works with the most popular browsers on the internet like Chrome, Microsoft Edge, Firefox, and Safari, and also the mobile version of these browsers.
WebAuthn is also a security enhancement by avoiding the flaws of the password-based system. It is compatible with a variety of operating systems, browsers, and devices that can use WebAuthn, which makes it a flexible solution.
There’s also the choice of multi-factor or single-factor authentication. It can be designed specifically to work with your particular system.
SPC
SPC (Secure Payment Confirmation) is an additional API currently being created by W3C. It allows for streamlined authentication in payments.
SPC builds upon WebAuthn. It also adds a payment layer to ensure that the bank or card issuer can offer a seamless payment experience.
SPC is a two-step process. The first step is when the user connects their device to a trusting party which could be the card issuer or a bank.
Then, the cardholder utilizes the device registered to verify their identity through that merchant’s site. When cardholders have registered an authenticator with the trusting party, they are able to use the authenticator on various merchant websites.
SPC is able to integrate FIDO (Fast Identity Online) into the EMV 3DS process. FIDO is a set of standards that establish authentication methods that do not require passwords. It replaces one-time passwords by using biometric or device-based identification.
Higher Operation System Details
When you make a 3DS payment transaction The directory server will transmit details about the operation to 3DS also known as access control server (ACS) through the form of an operational message. The message will have more details under 3DS v2.3. This should help reduce the number of transactions that fail.
Unsatisfactory product conditions can cause a transaction to fail. The brand new 3DS standard provides information on the turnaround time and performance, which lets the directory server send important updates to certification and exchange.
This is another method to simplify the transaction process and enhance security.
Enjoy the Benefits of EMV 3D Secure 2.3
EMV 3DS v2.3 has several enhancements that can benefit merchants, consumers as well as card issuers. It is possible to see a greater acceptance rate for transactions without compromising the fraud prevention mechanism.
Logibiztech provides a full range of security solutions for the various participants in the online payment process. We offer services to financial institutions as well as merchants, service providers, and cardholders.
Our platforms are flexible and extensible, and our integration with systems as well as our customer support ensure that you reap the maximum benefits out of 3DS, 3DS protocol.
Request a demonstration today to learn more about your solution to authentication.
