3D Secure Protocol: functionality and benefits for e-commerce

Unfortunately, online purchases are at risk of potential fraud attempts. There are many types of fraud: phishing, skimming, identity theft, compromised business emails, etc., and protecting consumers online is becoming increasingly difficult.

Fortunately, there are preventive measures to protect your e-commerce site and your customers. And 3D Secure Protocol is one of them.

What does it involve and what are the benefits? This guide tells you all you need to know!

What is 3D Secure Protocol?

3D Secure protocol increases the security of online credit card transactions. It has been developed by Visa under the name “Verified by Visa”, by Mastercard under the name “Mastercard SecureCode” and by American Express under the name “American Express SafeKey”:

increasingly, credit card providers are taking advantage of this technology to verify the authenticity of online transactions.

How does 3D Secure payment work?

The 3D Secure protocol adds an extra layer of protection to online payments.

These are the steps in the 3D Secure process:

1. the buyer adds products to the basket
2. at the payment stage, they enter their bank card details
3. if the merchant and the card-issuing bank use 3D Secure, the merchant is redirected to an authentication page managed by the card-issuing bank
4. the Internet user is asked to provide an additional form of authentication to prove their identity (this may be a password, a code received by SMS or passwordless authentication)
5. if authentication is successful, the transaction is approved and the customer is redirected to the merchant site
6. they will receive confirmation of their purchase by email.

What are the advantages of the 3D Secure protocol for e-tailers?

Ultra-secure payments

To make an online purchase, the cardholder must provide an additional form of authentication as well as the usual card details (card number, expiry date, CVV).

This could be a code sent by SMS, an answer to a security question, biometric authentication (fingerprint, facial recognition) or a unique password.

In all cases, the payment will be secure and this will increase the user’s trust in your e-commerce site.

A reduction in fraud

In 2019, the European Union recorded €1.5 billion in bankcard fraud. And it was precisely to combat the increase in fraud linked to online banking that Visa introduced the “Verified by Visa” system in 2001, and that other card providers followed suit.

Thanks to the double authentication required by the 3D Secure protocol, the risk of fraud is significantly reduced.

Transfer of liability to the customer’s bank

In the event of a fraudulent transaction via 3D Secure, the e-merchant is protected against financial losses due to chargebacks. It is the issuing bank that is held liable.

Improving user experience

Since the launch of the second version of this protocol, called 3D Secure 2, the user experience has improved significantly, thanks to more streamlined authentication methods and optimal mobile integration.

🔒 A note on 3D Secure 2 (3DS2) 💬

3D Secure 2 (3DS2) was developed in response to a number of limitations and challenges posed by the first version of 3D Secure (3DS1). Launched in 2018, this protocol offers a more streamlined authentication experience, including biometrics and push notifications. In addition, 3DS2 works across all interfaces: e-commerce sites accessed on PC, mobile websites and apps.

Compliance with current European legislation

With the implementation of the revised Payment Services Directive (PSD2) and Strong Customer Authentication (SCA), a protocol was needed that met new European requirements. The 3DS and 3DS2 protocols, which most European cards support, comply with these regulations.

What does “3D secure authentication error” mean?

The “3D Secure authentication error” message may be displayed for various reasons. It could be caused by a mistyped card number, an incorrect expiry date or a code received by text message that was copied incorrectly on the e-commerce site.

In this case, the customer’s debit or credit card provider rejects the payment and prevents the transaction from continuing.
 

3D Secure Protocol: key points to remember! ✍️

The main advantage of 3D secure is that it offers a high level of security for online transactions.

This reassures customers and prevents fraudsters from using stolen card details, for example. In the event of a fraud attempt, they will not be able to pass the second authentication required by the 3D Secure protocol, and will therefore be unable to steal money from their victims.

In short, the 3D secure and 3D secure 2 protocols offer nothing but advantages for both customers and e-tailers.

Want to find out more? Here are 7 effective ways to reassure your e-commerce customers.