What is 3D Secure?
3D Secure is a security protocol designed to protect online transactions from fraud. It is a system that provides an extra layer of security by requiring the cardholder to authenticate their identity during the online checkout process. The technology is used by banks and financial institutions to verify the identity of the cardholder before authorizing a transaction.
How does 3D Secure work?
When a customer initiates an online transaction, they will be prompted to enter their card details, including the 3D Secure authentication information. This information is then sent to the cardholder’s bank for verification. The bank will then verify the identity of the cardholder and send a response back to the merchant indicating whether the transaction is authorized or not.
The 3D Secure authentication process typically involves the customer entering a one-time password (OTP) that is sent to their mobile phone or email address. Alternatively, the customer may be asked to provide additional personal information or answer security questions.
What are the benefits of using 3D Secure?
The main benefit of using 3D Secure is that it helps prevent fraudulent transactions, which can save merchants and banks money in chargeback fees and lost revenue. By requiring cardholders to authenticate their identity, the system makes it more difficult for fraudsters to use stolen or cloned cards.
Another benefit of 3D Secure is that it can improve customer confidence in online transactions. By providing an extra layer of security, customers may be more willing to make online purchases, knowing that their card details are less likely to be compromised.
In summary, 3D Secure is an important security protocol for online transactions. By requiring cardholders to authenticate their identity, it provides an extra layer of security that helps prevent fraudulent transactions and improves customer confidence in online shopping.