3D Secure 2.0

What Online Payment Providers Should Tell You About 3D Secure 2.0

3D Secure 1.0 will be considered obsolete by October 2022 by major card payment networks. No need to worry, as 3D Secure 2.0 will come into the picture which means that you will need to switch to 3DS2 as soon as you can. As an online merchant that uses a payment gateway on your website, you know the importance of 3D Secure. If you are a new merchant and looking for more information keep reading for a quick recap of what 3D Secure means. 

The term itself helps you understand that 3D Secure is about security. Now, what kind of security is it? 3DS is a multi-authentication factor; if you shop online regularly you will recognise it as an OTP (One Time Password). Are you trying to remember a recent purchase you made?. Do you remember getting a page that asks to send a code to your mobile phone number or email to confirm your purchase? This process is known as an extra security layer that is added for transaction security. To get technical 3D Secure is a messaging security protocol used to authenticate the user’s identity before confirming the payment, and is starting to become a requirement with the service providers. Unfortunately, all technology has some kind of drawbacks and can cause issues with users not being aware of the security step so they abandon their purchase but importantly the advantage is that the customers identity is verified making the transaction secure and correct reducing the risk of chargebacks. It may take a little longer to complete a transaction but as a merchant and a customer we all want our online shopping to be safe and simple. Having an auto generated OTP sent to you eases the pain of having to remember lots of codes and passwords, I know I struggle sometimes to remember so thankfully 3DS does it for me. 3D Secure 2.0 is out and already being used in Mauritius and it is to note that 3DS1 will be discontinued very soon. Have you or your provider switched over yet? Don’t leave it too late  causing payment issues on your website. 

 

So what is 3D Secure 2.0 and how will it change the payment security process for you and your customers? This newer version of 3D Secure has been rolled out to improve 3DS 1 with the objectives of being less disruptive and offering a better user experience throughout the payment process. The process becomes faster, more secure and accurate with 3DS2. This time customers won’t get an OTP as now there will be a piece of Javascript code that is inserted into the merchant’s checkout page and this will take into consideration all the information a customer is registering like email, address, phone number, credit card details, and detects the IP address of the customer. All this information is sent to the cardholder’s issuing bank to validate the transaction. If the transaction is approved, the customer sees a processing indicator for a few seconds followed by a checkmark indicating approval. Only if the issuing bank determines that the transaction requires additional verification will the customer be sent a text message with a one-time code to enter; they could also be asked to scan their face or fingerprint for biometric authentication. Therefore in general it makes the process faster without the continuous need to use an OTP; more information is analysed before processing a payment making it more accurate at the same time. 

So the advantages that come with 3DS2 are:

 

Frictionless & Challenging Authentication: Faster Identity Check

With 3DS1 to confirm the purchase, we had to enter an authentication code received on our mobile phone on a newly opened page and then once the code was added, we would return back to the store page and confirm the order. With 3DS2, we just need to click buy and wait for the payment to confirm with no additional action required. You might be asking how? Well, with the new security protocol in place, static passwords would be forbidden and transactions would be authenticated based on your transaction history data which is accessible to the issuer.

 

Challenging Authentication: Less Fraud Due To Biometric Security Options

Also once we click on buy, we can approve the payment via our mobile banking application such as Juice, and to make it even more convenient and safer, you can be asked to insert your fingerprint to confirm the order. Isn’t that great? Safer and faster, what more could you want for your customers? Your payment provider has this option to make the payment authentication even more secure for you via SMS or automatically biometric data based on your preference. 

 

Better User Experience Via Smoother Payment Options

In the initial days, 3DS1 was not mobile-friendly as such. What we mean here is that, when we were redirected to the bank page to confirm the payment, most online shoppers would encounter a 3DS page that wasn’t always optimised for mobile devices. Not with 3DS2, the payment is smoother across all platforms and devices such as desktop web and mobile web browsers, other electronic devices, and mobile apps. This flexibility has made the experience better for users and thus will help in reducing abandonment rates.

By now, you must have understood that the main objectives of the 3DS2 protocol are to make online transactions faster and safer; improving the conversion rate relative to existing 3DS implementations by providing a better process. As a PCI DSS Compliant payment solution provider, offering you also with 3DS2 security, we urge you to switch to 3DS2 before you start facing rejects in payments on your website and lose sales.

Before you go, have a look at our previous articles where we talk about the types of payment security you should be aware of when choosing an online payment provider. You can also follow us on Facebook here for more updates on payment solutions. 

 

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