3-D security is an authentication technique that creates the current client contexts, such as browsers and mobile devices. The enhanced user experience minimizes friction during checkout and strengthens fraud prevention by assessing extra consumer data while verifying cardholders.
Cybercrime and online fraud are at an all-time high, yet e-commerce platforms provide limitless opportunities for small to medium enterprises to expand sales. To keep your site, your clients, and your client’s data as safe as possible, follow these simple measures there, follow these simple measures.
What is 3-D Secure Authentication, and how does it work?
3DS is a security protocol that adds an extra security to payment card transactions in card-not-present instances. Cardholders can verify their identity to avoid payment fraud, unlawful transactions, and chargebacks.
Here’s a step-by-step guide to completing a 3d secure transaction.
- The payment gateway sends a message to the directory server, informing it that the card has been registered in the program.
- The cardholder’s bank website routes throughout the payment procedure.
- The cardholder submits card information, and the bank receives the transaction data.
- 3D Secure requires the consumer to submit a static password or a one-time password to prove their identity.
- The purchaser confirms their identification. The cardholder’s bank is in charge of the procedure.
- The payment gateway receives the authentication. The bank receives transaction data from the gateway.
- The consumer transaction is either accepted or rejected.
What are the Three Domains of the 3D Secure?
This security protocol uses three separate domains for data exchange. Learn about the three types of domains that comprise 3D Secure.
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a) Issuer domain this
This domain belongs to the bank that issued the customer’s credit card. Funds are usually deducted from this account. There are numerous parts to the issuer domain.
- Cardholder browser and associates the software – This is where the customer inputs the data that initiates the security procedure.
- The consumer enrolls in the authentication procedure on the enrollment server.
- Access control server – This server aids in authenticating the cardholder’s identity and the card’s legitimacy.
- Validation server – This server verifies the identification of the cardholder.
b) Acquirer domain
The acquirer domain is the bank that owns the seller’s account. This account receives funds from the transaction. There are two parts to the acquirer domain.
- The merchant plug-in produces and processes the cardholders’ authentication messages at the end of the purchase by the cardholders.
- A signature validation server verifies the authenticity of an authorized order’s electronic signatures.
c) Interoperability domain
The transaction’s interoperability domain determines the required network. There are two sections to this domain. The first server checks to see if the account number is linked to a card scheme and then sends the request to the user access server. Lastly, the card scheme, SSL server, digitally signed, and public root hierarchy certificates are generated and distributed across all domains by the certificate authority.
What are Ways of Providing 3D Security to Your E-Commerce Site?
i. By using the 3D 2.0 protocol
Retailers can now better prevent fraud and provide a better customer experience thanks to the updated 3D Secure 2.0 technology. The new 3D Secure 2.0 protocol’s major goal is to make data transmitted between the three participants in a transaction easier. The 3DS 2.0 protocol makes the payment process easier. The 3DS 2.0 protocol employs token-based and biometric authentication, such as face or voice recognition, instead of the static password that had to be remembered in version 1.0.
Customers will experience reduced checkout friction due to the new 3D Secure 2.0 technology, including shorter wait times, fewer passwords to remember, and, most crucially, fewer steps when making a transaction. The 2.0 protocol, unlike prior versions of 3D Secure, allows non-browser-based payment methods such as wearable, in-app transactions, digital money, and e-wallets.
ii. By providing liability shifts for disputed transactions.
3DS provides merchants with strong protection against fraudulent chargebacks. A potential responsibility transfer to the card-issuing bank provides this protection. This implies that if a cardholder disputes a payment made using 3DS and determines it to be fraudulent; the merchant’s responsibility may transfer to the card issuer. The moment at which responsibility shifts depends on various circumstances, including the card provider, whether or not a particular card is already registered in a 3D secure program, and the answer obtained from the authentication request.
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iii. Experimentation and implementation
Payment services and gateways use different implementation mechanisms. The 3DS verification procedure frequently begins with the card details submitted. In addition, it is followed by a payment authorization for the shopping basket or order amount. As a result, the amount is delivered as part of the 3DS process, allowing for risk assessment. Some payment providers include 3DS as part of their hosted payment page, which is the component that manages the secure entry of cardholder data. As a result, the 3DS verification process integrates the payment flow, simplifying implementation and maintenance and providing customers with a more secure and streamlined experience.
Another common strategy is a redirect method, in which the consumer routes to a different page or site after entering their credit card information. Furthermore, this might be the issuing bank’s 3DS page or, more typically, a broker’s site that delivers 3DS services on the issuing bank’s behalf. This was an issue for merchants in the early days. Any redirect from an e-Commerce site to an unexpected site sometimes results in a loss of order. Customers always abandon their carts because they don’t trust the site they were redirected to.
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Final verdict
3D security may benefit your company, whether it is a regulatory obligation or a merchant using it merely to provide that extra peace of mind. In addition, it primarily allows a merchant to prevent fraudulent transactions and expenses. It also provides a responsibility transfer that might save your company money.
Finally, you’re offering your most valuable asset – your clients – the assurance that their personal information is secured, and their payment transactions are handled in the most secure manner possible when they purchase items from your brand.
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