What is 3D-Secure?

3D Secure is an additional security layer, developed to minimize the risk of fraud associated with bank cards and online payments. When making a payment online, a cardholder receives an SMS message with a unique one-time password to confirm the transaction.

1. The domain of the acquirer (the bank that serves the online store),
2. The domain of the issuer (the bank that issued the card),
3. The domain of compatibility (the domain of the corresponding payment system).

The technology was developed by Visa and MasterCard. When making online payments, pay attention to the information on Verified by Visa / MasterCard SecureCode standards. If the payment page does not support these standards, the service is not considered reliable.
PayDo works with all global security protocols and complies with the latest international payment protection standards. Each payment is protected by 3D-Secure technology.

How does 3D-Secure work?

Every time a client makes a purchase they receive a one-time password via SMS to confirm the payment and avoid fraudulent transactions.
The password is valid for a short period. After a few minutes, the system prompts you to request a new password.
Do not tell anyone the 3D-secure password. Bank employees, payment systems, and online stores are not allowed to require it under any circumstances.
The 3D-secure service is usually activated in every issued card, but if not, we strongly recommend doing that.

Benefits of 3D-Secure for merchants

The appearance of 3D-Secure can officially be called a revolutionary functionality. So how does 3D-secure work? With this authentication method, both customers and merchants enjoy various benefits. First of all, it is security, which means building trust between the company and its customers, thereby increasing brand loyalty. Other advantages of the method include:

• Transfer of responsibility: Each transaction conducted receives a guarantee of responsibility transfer from companies engaged in online sales. Once the transfer of responsibility is completed, card-issuing banks provide protection. Sellers assume the responsibility of obtaining confirmation of fulfillment of the specified conditions.
• Reduced risk of hacking attacks, hincreased protection: Businesses utilizing 3D-Secure can be sure that the risk of fraudulent attacks will be significantly reduced. It serves as an additional layer of security.
• No additional costs: To avoid extra expenses, it is very important to choose a payment gateway wisely, choosing one that does not require additional fees to add the service to your account.
• Fewer disputed transactions: The 3D authentication system aims to minimize the number of disputed transactions, leading to improved sales outcomes.
• Positive customer experience: When people are confident that their transactions will go through safely, they will happily repeat their purchases.

Given all of the above benefits, it is clear that 3D Secure is globally recognized for a reason. If you have the question "what is 3D Secure authentication," the answer is a modern system used to authenticate all payments that are made online. It increases the security of any money transactions and provides its customers with a high level of service.

Pros and cons of 3D-Secure

What is the main benefit of a 3D Secure card? As mentioned earlier – the transfer of responsibility. In simple terms, if a transaction is controversial, the seller is responsible for covering the cost. With 3D-Secure, all responsibility lies with the issuing bank. Obviously, your business benefits from the implementation of such a system.

Visa 3D-Secure protects against chargebacks, meaning that no refund will be credited to your trading account. Verified by Visa prevents customers from attempting “friendly scams” – making a purchase in order to get a chargeback, knowing that the bank will act on the customer’s side. However, 3D Secure Mastercard does not have such a service.

Among the advantages of the exchange are lower commissions, and in some cases Equation banks offer longer payment terms.

Customers, fearing fraud, may be cautious when choosing a store online. Therefore, Visa guarantees that with 3D Secure, shoppers will purchase online with greater confidence.

The flip side of the coin is that clients don't like the process because they don't understand it themselves. For them, it's an additional step in the purchase, which seems unnecessary.

As a business owner, you may face the resentment of customers whose cards have been blocked for online purchases. They may stop working with you.

Does 3D-Secure really make online shopping safer?

You might wonder “is my card 3D Secure”? In the case when the card is not registered, the procedure is such that the password is set by the person who first uses it online. Fraudsters who set out to steal your personal data will most likely know your date of birth or the last numbers of your insurance. This is enough to activate at the issuing bank. Professional cyber scammers know well that the 3D-Secure password can be easily reset. Moreover, they can easily guess it because Verified by Visa initially requires your password to be easy to remember, which can make it vulnerable.

At some point, 3D-Secure has been subjected to phishing attacks. To enhance user confidence during registration, Verified by Visa encourages users to add a unique phrase in the window. There is a specific, yet simple way to activate 3D-Secure for Visa.

The idea of 3D-Secure is primarily aimed at increasing customer confidence in online shopping, by protecting registered cards from being used without validation. Unfortunately, not every merchant or issuing bank uses this system, so some transactions are not guaranteed protection and may be rejected. Even with 3D-Secure, cardholders also cannot be sure that their data will not be leaked.