3D Secure

In today's world, online transactions have become an integral part of our day-to-day lives. However, along with the convenience of online transactions comes the risk of fraud and payment card misuse. To mitigate this risk, many financial institutions have implemented 3D Secure technology.

What is 3D Secure?

3D Secure is a security protocol designed to enhance online payment card security and reduce the risk of fraudulent activities. It is a system that allows merchants to verify the identity of the cardholder during an online transaction. The technology is commonly known as "Verified by Visa" or "MasterCard SecureCode."

How Does 3D Secure Work?

3D Secure technology adds an extra layer of security to the online payment process. When a cardholder makes an online purchase, they are prompted to enter a unique code or password that only they know. This information is then transmitted to the card issuer or the bank, who verifies the password or code, ensuring that the person making the purchase is indeed the authorized cardholder.

The 3D Secure protocol works in two steps:

  • The first step requires the cardholder to verify their identity by entering a password or code. This step confirms that the person making the purchase is the legitimate cardholder.
  • The second step involves the payment processor communicating with the card issuer or bank to ensure that the transaction is legitimate. If the transaction is verified, the payment is processed, and the cardholder's account is charged.

Benefits of 3D Secure

The primary benefit of 3D Secure is enhanced security, as it protects cardholders from unauthorized transactions. Additionally, the 3D Secure protocol also offers the following benefits:

  • Reduced Chargebacks: Chargebacks occur when cardholders dispute a transaction with their issuing bank, resulting in a charge reversal. 3D Secure can reduce the number of chargebacks as it provides additional evidence that the payment was legitimate and authorized by the cardholder.

  • Higher Customer Confidence: With 3D Secure, customers can be confident that their online transactions are safe and secure, motivating them to make more online purchases.

  • Liability Shift: If there is a chargeback due to fraudulent activity and the merchant implements 3D Secure, then liability for the chargeback may shift from the merchant to the issuing bank or card network.


3D Secure is an essential protocol for ensuring the security of online payment transactions. The technology adds an extra layer of authentication, reducing the risk of fraudulent activities and chargebacks while improving customer confidence. With the growing reliance on online transactions, 3D Secure presents an important layer of protection for both cardholders and merchants.

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