What is 3D secure?

In short, 3D Secure was created by Visa and MasterCard to add an additional layer of security for Card Not Present (CNP) merchants. 3D Secure ties the financial authorization process with online authentication based on a three-domain model (3D). The three domains consist of:

  • Acquirer Domain (the bank and the merchant to which the money is being paid)
  • Issuer Domain (the bank which issued the card being used)
  • Interoperability Domain (Visa & MasterCard)

Crush Disputed Transations for Your Card Not Present Business with 3D Secure

How it works

The 3D Secure feature enables the shopper to enter a password to confirm their identity with the card issuers. If the card issuer accepts the password then they complete their order and this comes to you as a legitmate and authenticated transaction.


This means that:

  • Merchants have added protection from fraudulent payments
  • It allows merchants to sell their products online with more safeguards
  • It enhances the customers confidence in the merchant resulting in increased spending
  • Reduces costs from fraudulent chargebacks by cutting down on the amount of fraud


Reduce Disputes

The primary benefit of 3-D Secure for Members is the reduction in disputed transactions and the resultant exception handling expense and losses. It is expected that nearly 80% of all e-commerce chargebacks and fraud, and a substantial proportion of customer complaints, could be eliminated with the use of Authenticated Payment. This will have a positive impact on Member profitability.


Boost Confidence

A less tangible, but nevertheless real, benefit is the assurance members can provide to their cardholders who are considering e-commerce transactions. Studies indicate that as many as a third of cardholders are afraid to shop online due to security concerns. Authenticated Payment may convince prospective ecommerce shoppers that it is safe to use their card online.


Benefits of Cardholder

  • Increased consumer confidence when purchasing
  • No special software is needed at the cardholder device
  • Easy to use
  • Control over card use for online purchases

Benefits of Merchants

  • Minimal impact on merchant’s interaction with consumer
  • Increased sales by enhancing consumer confidence
  • Reduced risk of fraudulent transactions
  • Decrease in disputed transactions