How important is 3D-Secure in card payment?

Unfolding the payment behaviours of Southeast Asians

Since the beginning of the time, a common rule known to the world is that everything has its enemy. Let it be a natural one or man-made, everything will have its match. For the e-payment industry, particularly card payment, it is card fraud.

Ever since the presence of fraud, the card payment industry kept on trying to improve security as best as they could. Well, so does fraudster. Recently, the giants of the card-payment industry created 3D Secure Card Validation to prevent credit card fraud from increasing.

What is 3D Secure Card Validation?

It is designed to secure online shopping transactions and authenticate the cardholder’s identity. It’s basically a new technical standard that designed to reduce unauthorized card usage. This new technology is expected to make online shopping safer and secured, for both merchants and customers.

Although this new system offers a wide and superior range of protection, it is not the ultimate answer for all kind of payment frauds. However, it is a brilliant idea to reduce frauds.

Worth mentioning: 3D Secure 2.0

Earlier in 2017, Visa announced 3D Secure 2.0, a “Better, stronger fraud-detection intelligence” solution for banks, payments provider and online retail. In conjunction with the announcement, Visa’s vice president, Mike Lemberger added “As the way we make payments has changed, so too has the need for innovation to keep transactions secure.”

This upgrade version of 3D Secure is said to make transaction both secure and friction-free. Not only that, it is also expected to include user authentication by one-time password, biometrics and backend authentications, and no more pop-up windows during checkouts (basically a seamless security system). Sounds great right?

The advantages of 3D Secure

Below are the advantages, the cream of the crop when using 3D Secure:

  • Reduced risk fraud – with this new technology misuse of cards and payment significantly reduced
  • More protection – Authorization requires confirmation of identity, code or email verification from the card issuer.
  • Safety against fraud loss -  It provides merchants security against fraud loss
  • Greater customer content – Using a 3DS protection such as Verified by Visa or MasterCard SecureCode provides greater customer satisfaction. Customers will find it easy and secure to shop online
  • Increase in sales - New customers on the block will fill confident and indirectly increasing your sale.
  • Better international transaction – Merchants find it safe to accept international card transactions.
  • Secure server – 3D Secure offers transactions through SSL encryption
  • Merchant satisfaction – With the reduction in fraud cases occurred, opportunity for increased sales are inevitable.

Why online merchants need 3DS security in payment?

First and foremost, the 3D Secure system is an innovation of keeping the security as max as possible and still using the best available online merchant facilities. Not only it is a high security system but also convenience for customers and merchants. Furthermore, by embracing 3D Secure, coupled with other security systems, merchants not only can streamline their payment authentication solutions but also protect their customers against fraudulent attempts.