xceptionally created by MasterCard and Visa, 3D Secure, also known as 3Ds, is one of the technical standards adding a layer of security to online debit and credit card transactions. Over the last few years, eCommerce has duly undergone some substantial growth, and the pandemic has also accelerated digital development all around the world. Hence, enjoying the upgraded and best versions of 3D, which are 3D Secure 1 and 3D Secure 2.
3D Secure 1
3DS 1, the original version, can facilitate the SCA compliance for the PSD2. It can even offer merchant fraud liability protection only until the month of October 2021 for Visa Secure.
This version triggers serious issues for merchants. Coming from a time which is even prior to mobile phones, user experience is naturally varied at best and disappointingly terrible. It generally depends upon a pop-up window, a place where customers must enter details making the page look even less safe, and can also be vulnerable to cyber-attack.
3D Secure 2
With the version 3DS 2, merchants possess the gift of sending a lot more data to the issuing bank as compared with 3DS1. Instead of only depending on static passwords, this allows the utilization of dynamic authentication via token-based authentication and biometrics methods. With that extra data, issuers will be able to apply frictionless authentication so as to approve a transaction without the need for any manual input; this is known as Frictionless Flow.
Differences Between 3DS1 and 3DS2
3D Secure 2 is an advanced and updated version of 3D S 1. The chief difference betwixt the two is the 3D S2 is the launch of more and more frictionless authentication along with a better user experience across devices.
While Visa initiated the protocol in the year 1999, only computers were the available devices for the purpose of online shopping. The original version was created with the intention of desktop browser authentication because smartphones were not that prevalent. Also, some issuing banks needed the cardholders to register for the 3D Secure by a static password that was associated with the payment card.
The extra layer of safety provided the merchant complete liability shift in favor of the issuing bank. But, it did come with some issues. Consumers continuously dropped out of the flow due to the fact that 3DS1 was short of mobile flows and native in-app. Static passwords were difficult to remember, which naturally caused friction, along with extra operational costs for customers because of customers contacting support so as to reset the static passwords.
Some of the major benefits of 3D S2 comprise a more continuous user experience through devices and excellent data exchange for the purpose of preventing fraud and diminishing friction. In fact, the 3DS2 protocol completely combines with the merchant’s experience at the time of checkout experience supporting a seamless flow of payment.
Major card schemes like Visa recommend that merchants and issuers support both versions so that stakeholders would be able to respond to every message version and augment the no. of successful transactions for users.
Written by Dhrubajyoti Baruah
Consultant, Payment Solutions, Ottu