What is 3D Secure 2.0?

3D Secure 2.0 builds on the original 3dsecure protocol and introduces new features and technologies. Key enhancements to 3D Secure 2.0 include the user experience, risk-based authentication, mobile support, PSD2 compliance and improved fraud detection.

Benefits of 3D Secure

3D Secure 2.0 is an enhanced version of the original 3D Secure protocol and provides additional benefits for merchants engaged in e-commerce and online payments.

Benefits of 3D Secure 2.0 for merchants:

Better user experience: 3DS2 uses risk-based authentication and biometrics, such as fingerprints or facial recognition, to verify a user's identity. This reduces interruptions during the payment process and can lead to higher conversions.
Advanced risk-based authentication: 3descure 2.0 allows more contextual data about the online payment to be shared. This makes it easier to determine the risk level of a transaction. This leads to fewer unnecessary authentication requests and a smoother "frictionless" payment process for customers - which in turn leads to higher conversion rates.
Improved mobile and in-app payments: 3DS2 is specifically designed to work better with mobile devices and in-app payments for a seamless and user-friendly experience across platforms and devices. Important, given the increase in mobile shopping and use of mobile apps for purchases.
PSD2 compliance: 3dsecure 2.0 helps merchants comply with the European Revised Payment Services Directive(PSD2), which requires strong customer authentication(SCA) for online transactions within the European Economic Area. By implementing 3DS2, merchants can comply with the regulations and avoid fines.
Improved fraud detection and prevention: By sharing more transaction data and using advanced risk analysis, 3DS2 can help reduce the number of fraudulent transactions and minimize chargebacks. This reduces operational costs and reputational damage to merchants.
Higher approval rates: With advanced risk assessment and improved user experience, approval rates for online payments can increase, leading to more completed transactions and higher revenue for merchants.
Fewer chargebacks: A consumer's credit card payment with 3dsecure can never be reversed via a so-called chargeback based on the reason "it wasn't me.
LVP-exemption: A payment up to 30 euros, may be processed without mandatory authentication, this increases your conversion. If you choose this and a chargeback occurs with fraud as the reason, you are liable for the costs.

Advantages of 3D secure 2.0 for consumers:

Fewer steps in the payment process: 3descure 2.0 uses risk-based authentication and biometrics, such as fingerprints or facial recognition, to verify the user's identity. This provides fewer steps in the payment process, and more convenience for consumers.
Secure payment environment: 3DS2 enhances the perceived security of online payments. This helps consumers feel more secure when using their payment cards for online purchases.
Easy mobile payments: 3DS2 is specifically designed to work seamlessly with mobile devices and in-app payments, providing a consistent and user-friendly experience regardless of the platform or device being used.
Increased trust in merchants: 3DS2 allows consumers to trust that their payment information is processed securely and that the merchant is committed to ensuring a safe online shopping experience.
Global acceptance: 3dsecure 2.0 is supported by major card networks and banks around the world. This means that consumers shopping online from merchants implementing 3DS2 benefit from the same security standard regardless of where they are located or which bank they are affiliated with.
Liability protection: In the event of a fraudulent transaction, many card-issuing banks offer zero liability protection for consumers when 3dsecure 2.0 is used. This means consumers are not held responsible for unauthorized transactions and their financial losses are limited.