3D Secure – Protocol for Online Payments

3D Secure is a secure protocol for online payments. When you notice the Verified By Visa mark when making a payment, it means that the service developed by Visa is used to limit the risks of internet fraud associated with the false use of payment card numbers.

The purpose of this protocol is to ensure that the card is used by its rightful owner for every online payment.

3D Secure (3 Domain Secure) is a protocol that aims to authenticate a transaction by determining who is using the card.

A special window for online card payments displays the bank’s logo, the space for entering a one-time code, and sometimes a counter that shows the remaining time to confirm the code, before the transaction is canceled. Then the procedure continues by the bank sending the customer a one-time code via SMS or email.

Depending on the bank, this can also be a code number that is issued when you pick up the card, which some banks often practice.

There is a possibility that in addition to the code, the system also asks for some personal data, such as the date of birth. When the code is confirmed, the bank confirms the transaction. If the verification of the code fails three times in a row, the transaction is canceled, and card payment is blocked on 3D Secure sites.

The 3D Secure protocol implements technologies intended for e-commerce owners.

By applying this protocol, fraud in e-commerce is put in the way, so that the customer is not responsible for them, i.e. there are no more logistical problems on that side.

The goal is also to make the payment experience as easy as possible for the customer. When a purchase is made, 3D Secure seamlessly performs background activities and transfers information between the online store and the card company whose customer is the customer who made the purchase.

This information includes data related to the history of the purchase, which can help verify his identity (for example, the device he uses, his shopping habits, etc.), and the more information is transmitted, the more secure the identification. 

Using the 3D Secure payment system allows you to take advantage of certain benefits. Although 3D Secure payment is not an obligation, it is an additional means of achieving PCI DSS compliance, which obliges any site that allows online transactions to protect customer data available to the bank.

The 3D Secure payment system is customizable, which means that the payer can choose to activate it only according to certain parameters, i.e. depending on where and what he buys, as well as how much money he spends.

Also, 3D secure payments reduce the amount of unpaid bills caused by credit card fraud, as anyone who wants to misuse someone’s card is prevented from completing the initiated transaction.

Providing visible protection to customers’ banking data is an important factor in building trust in online transactions.

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This content was brought to you by VISA, the global leader in digital payments, whose mission is to connect the world with an innovative and secure payment network to enable individuals, businesses, and economies to grow.

Visa is the general partner of the Fintechlopedia project, an electronic glossary containing all relevant elements of digital transactions and related phenomena, situations, processes, and innovations.