3DS
3DS is the Acronym for 3-D Secure
An authentication protocol designed to enhance the security of online card-not-present (CNP) transactions. Developed by EMVCo, 3DS adds an extra verification step between the merchant and the card issuer to ensure that the person completing the purchase is the legitimate cardholder. It is widely recognized through branded implementations such as Visa Secure, Mastercard Identity Check, and American Express SafeKey.
The term 3-D refers to the three domains involved in the authentication process:
- Acquirer Domain: The merchant’s bank or payment processor.
- Issuer Domain: The bank or financial institution that issued the card.
- Interoperability Domain: The infrastructure that connects the merchant, acquirer, and issuer (often managed by the card network).
During checkout, if a transaction is flagged for 3DS verification, the customer may be redirected to a secure page or presented with an embedded challenge (for example, a one-time passcode or biometric prompt). This process reduces unauthorized use of stolen card data and shifts fraud liability away from merchants who adopt the protocol.
The latest version, 3-D Secure 2.0 (3DS2), introduced frictionless authentication by analyzing contextual data—such as device information, geolocation, and transaction history—to verify low-risk transactions without interrupting the customer experience. It also improved compatibility with mobile devices and digital wallets, aligning with regulatory requirements like the European Union’s Strong Customer Authentication (SCA) under PSD2.
Key Points:
- Security: Adds a verification layer for card-not-present transactions.
- User Experience: 3DS2 supports seamless, frictionless checkout for trusted customers.
- Compliance: Meets global regulatory and network mandates for strong authentication.
- Liability Shift: Protects merchants from certain fraud-related chargebacks.
In e-commerce, 3DS has become a cornerstone of secure online payments—balancing fraud prevention with streamlined customer experiences and compliance with international standards.
