Reduce Card-Not-Present Fraud With 3D Secure 2.0
Enjoy seamless, customer-friendly, and fraud-resistant transaction processing with the industry’s newest fraud protection technology!
What is 3D Secure 2 Technology?
3D Secure 2.0 technology is a security protocol that adds a layer of protection to card-not-present transactions by verifying the customer’s identity. The newly-upgraded 3D Secure 2 system brings merchants more value than ever before: It supports a wider range of card-not-present, e-commerce, in-app, mobile wallet, and MOTO (mail order telephone order) payments, and uses over 150 customer- and transaction-specific data points to authenticate transactions.
This robust data exchange reduces the odds that the customer will need to take the time to verify their identity. If customer verification is needed, the verification process is fully embedded into the payment flow, unlike 3D Secure 1.0, which redirects the cardholder to their issuing bank’s website. Whether you want to create rules around product pricing, shipping address, or a customer’s purchasing history, 3D Secure 2.0 gives you the flexibility to create customized product or industry-specific transaction rules you can use to gather and evaluate the type of transaction data that’s most important to you.
As a bonus, using 3D Secure 2.0 technology provides merchants with chargeback protection. If an authenticated transaction triggers a chargeback due to fraud, the liability shifts from your business to the issuing bank– the customer’s bank is liable for that chargeback, not your business. Even if the issuing bank has not yet adopted the new technology, you won’t be liable for the chargeback!
Adoption of 3D Secure 2.0 technology is still in its early stages, and it’s expected that widespread adoption will start to pick up over the course of this year.
Here’s What the 3D Secure Authentication Process Looks Like
When your customer initiates a transaction, the customer’s bank uses 3D Secure data plus your business-specific information to evaluate the risks associated with the transaction.
If the bank successfully authenticates the customer’s identity and decides the transaction poses low fraud risk, the transaction moves on to the authorization process. Most transactions will flow through authentication and authorization without any problems. If the customer’s bank cannot authenticate the customer, the customer will need to provide more information to verify their identity and the transaction will either be authorized or declined. Typically, only a small number of transactions fail authentication.
Make It Easy To Do Business With You
Consumers today expect they can use multiple devices to perform financial transactions. Because 3D Secure 2.0 technology is optimized to work in the background with mobile phones, laptop computers, and tablets, transactions can be authenticated regardless of the device the customer uses.
Besides the convenience of using any type of device to make a purchase, consumers also expect their transaction experience to be quick, easy, and frictionless. With 3D Secure 2.0 technology, the issuing bank uses the transaction rules you created to authenticate the customer’s identity. This allows the customer to complete the transaction without having to provide more information and move through the checkout process more easily. Ensuring an easy-to-use purchasing experience keeps customers coming back!
Help Your Business by Improving Your Customers’ Checkout Experience
3D Secure 2.0 technology reduces potential fraud by authenticating a customer’s identity before a transaction takes place. Behind-the-scenes identity verification provides a frictionless, hassle-free purchasing experience for your customers. This eliminates the need for the customer to provide additional information at checkout and can reduce cart abandonment. Giving your customers a “frictionless” purchasing experience leads to happy customers and more sales!
Are You a Developer?
Bring your merchants a card-not-present payment experience that’s extra-frictionless and equipped with robust fraud prevention. Our solution is easy to integrate with browser- or mobile- based checkout flows, without requiring redirects to the cardholder’s bank website. Our mobile SDKs enable you to add 3D Secure 2.0 technology to merchant mobile apps, creating a customer-friendly shopping platform that’s compatible with biometric authentication methods.