What is 3D Secure Authentication?

Meaning and Introduction

3D Secure is an extra layer of security in online transactions with credit cards and debit cards. The 3D in this name means 3 Domains Secure and thus it is the security protocol involving the three parties which are merchant/acquirer, the issuer, and the interoperability.

Here the respective domains are as below:

  • Acquirer – Funds are paid to this bank
  • Issuer – Respective Card Issuing Bank
  • Interoperability – the payment environment system like the internet, server, etc.

This Fraud Prevention measure was first put into practice by VISA as ‘Verified by Visa’ brand. Along with VISA, it is also implemented by Mastercard (SecureCode), Discover (ProtectBuy), JCB International (J/Secure), and American Express (American Express SafeKey).

When a transaction goes through the 3D authorization like using the VISA or Mastercard brand, it will redirect to authorize the transaction on the website of the issuer. The issuer uses the authentication methods generally including a password related to the card (set up with the bank beforehand) and/or one-time password (OTP) received in the SMS text message on the registered mobile number and email.

3d secure authentication

Working of 3D secure authentication with PayKun

PayKun is a 3D secure Payment Gateway. When a customer makes the card payment through PayKun the below steps will be involved.

  • The customer enters the Card Details
  • PayKun in the backend connects a directory server of respective VISA, Mastercard, etc brands and gets the notification about card registration in the program
  • Redirection to the 3D authentication page to authenticate the customer to the issuer with password or OTP
  • PayKun receives the Success/Fail result from this
  • Per that the transaction details are sent to the acquirer, who authorizes the transaction
  • The customer is redirected back to the website and the transaction status is then shown to the customer as Success or Fail

Advantages of 3D Secure Authentication

As a benefit of using the 3D Secure Protocol for online card transactions, the customers would get additional security in online shopping. They get the assurance while making the transactions that their card details are safe and they can trust you.

As it is a fraud prevention measure, you and your customer can both be protected from the potential fraud and unauthorized transaction chargebacks. Entering the passwords and OTPs by the customer during the transaction authorization makes you non-liable for the purchase (if you are not at fault) the issuer would be liable in case the customer claims that he has not authorized the payment. The issuer will be responsible for managing any refunds to the customer. [The Chargeback Policies depends upon the card brand used]

Read more about Chargeback Process

Getting Started with 3D Secure

There are two choices here:

First is you can choose the Acquirer or the Card Payment Provider using the 3D authentication.

Secondly, you may register for a merchant account with the 3D payment gateway such as PayKun that provides the 3D authenticated card payment processing services along with other multiple payment method options. It would securely process the customer payments funds through acquiring a bank and then they are settled to your account.

Thus, you can collect payments securely with the 3D authentication services.

Also, PayKun is PCI DSS compliant, SSL certified, and further follows AES Encryption standards. With PCI DSS compliance you can make sure that you and your customer both are protected and the card details are transmitted securely.

You can collect payment through your website by easily integrating PayKun payment gateway checkout with the help of readily available Integration kits supporting all the major platforms. This way you can provide a secure option to pay online on your eCommerce platforms with 120+ online payment options including Cards.

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