Frequently asked questions
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What is 3D Secure?
3D Secure is a security protocol for online transactions, preventing card fraud. It involves three domains: the issuer, the retailer, and an interoperability platform. Owned by major credit card companies, EMVCo provides updates for enhanced security. The protocol adds a two-step authentication layer to online purchases, making online shopping more secure.
What is the rationale behind developing a new specification when 3D Secure is already widely adopted in the industry?
After 17 years since the introduction of 3D Secure, it became evident that a new version, 3D Secure 2 (3DS2), was needed to adapt to evolving market trends. Recognizing the importance of supporting mobile devices and digital wallets, 3DS2 was developed for improved security, performance, and a smoother payment process. This upgrade aims to enhance user experience and address higher cart abandonment rates associated with the earlier version, 3D Secure 1.
What are the main changes in 3D Secure 2?
3D Secure 2 employs dynamic authentication methods like biometrics and token-based authentication, replacing static passwords. Enhanced data elements shared through the protocol enable credible risk-based analysis for transaction authentication. Eliminating the initial sign-up and static passwords enhances user experience, reducing cart abandonment. The message interface and challenge flows are optimized for mobile platforms, including in-app, mobile, and digital wallets.
What are the benefits of 3D secure 2?
3D Secure 2 addresses the shortcomings of 3D Secure 1, offering a faster, more unified, and less intrusive authentication solution. Merchants benefit from reduced cart abandonment as the new Frictionless Flow eliminates the need for manual password entry, a common cause of abandoned purchases.
For issuers, 3D Secure 2 provides a comprehensive set of cardholder and transaction information, enabling more informed decisions on potentially fraudulent transactions. This helps reduce chargebacks, saving time and resources in dispute resolution.
End consumers, or cardholders, enjoy enhanced security against fraudulent use of their credit cards. Compared to 3D Secure 1, 3D Secure 2 delivers a quicker, more accurate, and seamless authentication process, ensuring a frictionless experience for the user.
What is frictionless flow, and how is it achieved?
Frictionless Flow, in the context of 3D Secure 2, aims for a seamless authentication process during online transactions. Achieved by eliminating manual steps like static password entry, it utilizes dynamic methods such as biometrics. By assessing risk through enriched data, transactions with low risk proceed without user intervention, enhancing the overall user experience.
Are 3D Secure protocols utilized by all e-commerce websites?
No, the implementation of 3D Secure is at the discretion of individual merchants. However, in certain countries like India and South Africa, 3D Secure is compulsory.
What does the liability shift rule entail in 3D Secure 2?
Presently, the liability shift is granted to all merchants attempting 3D Secure 1 authentication, regardless of the card issuer’s endorsement or the cardholder’s protocol registration. This feature of 3D Secure 1 allows merchants attempting authentication to avoid chargeback liability.
3D Secure 2 also supports liability shift, and as the updated protocol is progressively adopted, individual card schemes establish their rules for implementing liability shift. For example, Mastercard has supported liability shift since October 2018, while Visa activates liability shift based on the merchant’s location, with various regions adopting it between April 2019 and April 2020. For more details on liability shift and how Logibiztech can assist merchants in leveraging this benefit, please contact us via the provided form.
Have I ever employed 3D Secure in the past?
You might have encountered 3D Secure without being aware of it. If you’ve been prompted to enter your credit card password during online shopping, it’s likely that the website utilizes 3D Secure. Major card brands each have their own branding for 3D Secure services – Visa calls it "Verified by Visa," Mastercard labels it as "Mastercard Identity Check," and American Express brands it as "American Express SafeKey." Despite the different names, they all serve the same purpose of implementing 3D Secure.
Which card schemes are compatible with EMV 3DS?
Logibiztech is compatible with all major worldwide card schemes, including Visa, Mastercard, American Express, Discover/Diners, JCB, eftpos, and UPI. Additional networks are also part of our roadmap. For specific inquiries about networks or regions, feel free to stay tuned or reach out to the Logibiz team.