Author: Ana Nives Radovic
Publication: Fintechlopedia
Presented in association with: Visa Inc.

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.

3D Secure is a secure online payment protocol that has been developed to mitigate the risks of internet fraud and protect cardholders from unauthorized transactions. This protocol is used by a number of banks and card issuers, including Visa, to ensure that online payments are made only by the rightful owner of the card.

The 3D Secure protocol, also known as 3 Domain Secure, is designed to authenticate transactions by determining the identity of the person using the card. When a customer makes an online payment, a special window appears, displaying the bank’s logo and providing a space for entering a one-time code. Sometimes a counter may also be included to show the remaining time available to confirm the code, before the transaction is canceled.

To complete the transaction, the customer must enter a one-time code that is sent by the bank via SMS or email. Some banks may issue a code number that is linked to the card and provided at the time of card pickup. In addition to the code, the system may also ask for personal data, such as the customer’s date of birth, to provide additional verification.

Once the code is confirmed, the bank approves the transaction, and the payment is processed. If the code is not confirmed after three attempts, the transaction is canceled, and card payments on 3D Secure sites are blocked.

The purpose of 3D Secure is to ensure that online payments are safe and secure, protecting both the cardholder and the merchant from fraudulent activity. The Verified By Visa mark that customers may notice when making a payment indicates that the 3D Secure protocol is in use, providing an additional layer of security and peace of mind.

Understanding the Benefits of 3D Secure Protocol in E-commerce

The rise of e-commerce has brought with it a surge in online payment fraud, and consumers have become increasingly concerned about the security of their online transactions. In response to this, the financial industry has developed the 3D Secure protocol to provide a more secure payment experience for both consumers and online merchants.

The 3D Secure protocol uses advanced technologies to protect consumers from fraud while making the payment process as easy and seamless as possible. By applying this protocol, online merchants can significantly reduce the risk of fraud, and customers are not held responsible for any fraudulent activities that may occur during their transactions.

One of the primary goals of 3D Secure is to make the payment experience as easy as possible for the customer. When a purchase is made, 3D Secure performs background activities seamlessly and transfers information between the online store and the card company whose customer is making the purchase. This ensures that the payment process is quick and convenient for the customer, while also ensuring that the transaction is secure.

The information that is transferred between the online store and the card company includes data related to the history of the purchase, which can help verify the customer’s identity. For example, the type of device they are using, their shopping habits, and other details can all be used to help confirm their identity. The more information that is transmitted, the more secure the identification process becomes, and the less likely it is that fraudulent activities will occur.

In summary, the 3D Secure protocol is a valuable tool for online merchants looking to provide their customers with a secure and convenient payment experience. By implementing this protocol, merchants can significantly reduce the risk of fraud and provide their customers with peace of mind. Additionally, the 3D Secure protocol makes the payment process easy and convenient for customers, ensuring that they keep coming back to make purchases again and again.

The Benefits of Using the 3D Secure Payment System

In the world of online commerce, security is paramount. Customers want to know that their personal and financial information is safe when making transactions on the internet. One way to provide this security is through the use of the 3D Secure payment system. This system offers a number of benefits to both merchants and customers.

First and foremost, using the 3D Secure payment system helps merchants achieve PCI DSS compliance. PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards designed to protect cardholder data. Any site that allows online transactions is obligated to comply with these standards. By using 3D Secure, merchants can offer an additional layer of protection to their customers’ data, helping to prevent fraud and unauthorized transactions.

The 3D Secure payment system is also highly customizable. Customers can choose to activate it only for certain types of transactions or purchases, based on specific parameters such as the amount spent or the location of the merchant. This allows customers to have greater control over their security settings and ensures that they are only prompted to provide additional authentication when necessary.

One of the most significant benefits of using 3D Secure payments is the reduction of unpaid bills due to credit card fraud. This system prevents fraudsters from completing transactions using stolen credit card details, protecting both the merchant and the cardholder.

Using 3D Secure payment provides visible protection to customers’ banking data. By displaying the Verified by Visa or Mastercard SecureCode logo during the payment process, customers can see that the merchant takes their security seriously. This helps to build trust in online transactions and encourages customers to return to the site for future purchases.

The 3D Secure payment system provides a range of benefits to both merchants and customers. By offering additional security, reducing fraud, and building trust in online transactions, it is an important tool for any online business.

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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.