What is 3D Secure?
Online payments have become increasingly popular in recent years. With the convenience of shopping from the comfort of your own home, it’s no wonder that more and more people are turning to online platforms to make their purchases. However, with this convenience comes the need for increased security measures to protect both consumers and merchants from fraudulent activities.
One such security measure that has been implemented is called 3D Secure. 3D Secure is an additional layer of security for online credit and debit card transactions. It was developed by the major card networks (Visa, Mastercard, and American Express) to provide an extra level of security and protect both cardholders and merchants from unauthorized transactions.
How does it work?
When making an online payment, if the merchant is enrolled in the 3D Secure program, the cardholder will be redirected to a secure webpage provided by their card issuer. This webpage will prompt the cardholder to enter a One-Time Password (OTP) or provide some other form of authentication, such as a fingerprint scan or facial recognition.
Once the cardholder successfully completes the authentication process, the merchant receives a notification that the transaction has been authenticated, and the payment process is allowed to continue. If the authentication is unsuccessful, the transaction may be declined or additional security measures may be taken.
The purpose of 3D Secure is to verify the identity of the cardholder and provide an additional layer of protection against unauthorized transactions. By requiring cardholders to authenticate themselves, it becomes more difficult for fraudsters to use stolen card details to make purchases.
Benefits of 3D Secure
The implementation of 3D Secure has several benefits for both consumers and merchants. First and foremost, it enhances the security of online transactions by adding an extra layer of authentication. This helps to reduce the risk of fraud and increases customer confidence in making online payments.
For merchants, 3D Secure provides protection against chargebacks resulting from unauthorized transactions. By shifting the liability for fraudulent transactions to the card issuer, merchants can focus on running their business without worrying about financial losses due to fraudulent activities.
Additionally, 3D Secure can help merchants comply with industry regulations and standards for handling sensitive customer data. By implementing robust security measures, merchants can safeguard their customers’ payment information and protect their reputation.
In conclusion, 3D Secure is an important security measure for online payments that provides an additional layer of protection for both cardholders and merchants. By implementing this authentication process, the risk of unauthorized transactions and fraud can be significantly reduced, making online shopping a safer and more secure experience for everyone involved.
Reference Articles
Read also
[Google Chrome] The definitive solution for right-click translations that no longer come up.