There are people who know what is a payment gateway but do not have the knowledge of the difference between the 2D and 3D payment gateway. They may not have an idea that there are two separate types namely 2D and 3D payment gateway.
Whereas, there may be some who might not know what is called a payment gateway. Therefore, to understand and start with the basics, here is the meaning of a payment gateway and methods of using it.
What is a Payment Gateway?
The technology through which the merchants can accept online payments from the customers in a secure way using multiple payment methods is called Payment Gateway.
There are various types of service providers. They charge the transaction discount rate (per transaction fee) and other charges as per their policy such as setup fees and maintenance charges.
3D and 2D payment gateways, both can be integrated on the website and mobile application as per the supported platforms by the particular service provider.
Alternatively, if they support the Payment Links then it does not require a website/app to accept payments but still, you can provide the option to the customer to make the payment through a 2D payment gateway or a 3D payment gateway by sending these links.
Merchants can also integrate a payment button on the website/app if their purpose of accepting the payments demands that.
Using a payment gateway seems to be a complex procedure, but it really isn’t these days. PayKun is a 3D payment gateway and the PGs like PayKun have ready plugins and SDKs which do not require any technical knowledge to use it. It is quite simple to integrate it and various PGs also provide in-house integration assistance.
| TOPIC | 2D Payment Gateway | 3D Payment Gateway |
| Full-Form | 2 Dimension Secure (2DS) | 3 Domain Secure (3DS) |
| Domains | Customer(Issuer) and Merchant(Acquirer) | The merchant/acquirer, the issuer, and the interoperability* |
| Function | When a customer can proceed with the payment gateway transaction with the card details only such as a Card Number and Expiry Date and without a One-time Password or Security Check, it is known as a 2D Payment Gateway Transaction. Basically, it does not require any additional password. | When a transaction using a Debit/Credit Card involves a 3D page authentication that requires OTP/3D secure password for security checks apart from the Card details (Card Number, Expiry Date, and CVV), then it is known as a 3D Payment Gateway Transaction. It adds an extra layer of security to online payment. |
*interoperability – the payment environment system like the internet, server, card scheme, credit, debit, prepaid or other types of a payment card, etc.
To know more about the working of the 3D Gateway, you may read on What is 3D Secure Authentication
Thus, in a 2D Payment once the customer enters the basic card details and as they proceed, the amount will be deducted from his bank account without any further security authentication.
Whereas, in a 3D Payment, the one who is making the payment needs to enter the Password and OTP before the amount can be deducted from the card holder’s bank account. This enables safety and security.
A New One Time Password is generated and sent with every new transaction enabling a strong authentication process. And the password is only known by the cardholder, as it is issued by his issuing bank or he himself sets a new one.
3D Gateway Solution enables a sense of security on both the merchant and the customer’s side. The customers can safeguard their funds and save themselves from forgery and the merchant can reduce the chargeback and fraud ratio. On the contrary, the 2D Gateway attracts more risk with regard to these issues.
Thus,
2D Gateway is risky and it is recommended for the merchants not to provide that solution to the customers. It puts him and the customer both at risk.
3DS Gateway is a secured solution but it is also compulsory for the issuer banks/card companies of the countries like India, they can allow the transactions with the 3D Secure authentication only. Other European countries, the US, Canada, etc can allow 2D Gateways.
The above blog provides information on how to get a 3D Payment Gateway for online payments.
