Explained: How Card Payments Secured With 3D Secure Work

3D Secure - UgTechMag.Com
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If you own a debit card and you often use it for online shopping and payments, you definitely must sit in here and learn this. With the increasing fraudulent activities over the internet, you should be keen on the sites where you submit your credit card credentials. One of the best ways to keep safe is by using the 3D secure. In this article, I will take through the details of this secure procedure, and also how Card Payments Secured With 3-D Secure Works.

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Contents

What is 3-D Secure?

3D Secure is an additional layer of cardholder authentication on online card transactions. For instance, if you are making a payment online and the bank detects that the transaction might be suspicious, the bank card issuer redirects them to a 3DS page for extra verification. You may also need to note that this secure process was developed by Visa and is now licensed to MasterCard.

How does this happen?

A transaction using 3D secure will initiate a redirect to the website of the card-issuing bank to authorize the transaction. Each issuer could use any kind of authentication method (the protocol does not cover this) but typically, a password-based method is used. In other words, 3D Secure (3DS) adds an extra layer of protection to online shopping. With 3DS enabled, you have 2-step authentication on every online purchase such that no payments will ever go through unless you authorize them yourself.

Practical example

If you are using Equity Eazzy Banking application, you realize that after making a transaction, the app will process and return a verification code. Once you are sure that the transaction is really valid, you will go on to press ok or copy and paste the verification code to the field and confirm. There are many other banking applications that have implemented 3D Secure.

How Card Payments Secured With 3-D Secure Work

STEP 1

The cardholder enters their unique credit/debit card data

STEP 2

The system checks whether or not the card is registered for 3D Secure.

STEP 3

In this step, the 3D secure enrollment is confirmed. The client is then redirected to a 3D Secure page served by the card provider.

How Card Payments Secured With 3-D Secure Work - UgTechMag

Advantages of 3D secure technology

It is simple and easy to use on the consumer’s end since you won’t have to copy and paste the pin. You’ll only have to complete this step if your bank notices a possible security issue.

Downside

However, the downside is that sometimes it slows down the whole transaction process. The process of the bank issuing a redirect, and then you having to confirm with the verification code is really cumbersome sometimes.

You should note!

  • This secure procedure is only available for ecommerce transactions
  • Your Mail Order and Telephone Order shall not be affected
  • Transactions that occur via a telephone or virtual terminal are not applicable here