Launched by Visa in 2001, 3D Secure is an important fraud prevention measure that adds an extra layer of security when you’re dealing with card-not-present transactions, such as online payments with e-commerce.
3D Secure was designed specifically for improving the security of Internet payments, and is now backed and recognised by most major debit and credit card issuers, including Mastercard (as Mastercard Secure Code) and American Express (as American Express SafeKey).
The security feature comes in the form of an authentication step that is presented to customers before they can complete a purchase online, which provides additional verification that they are the authorized owner of the card account.
How Does 3D Secure Payment Authentication Work?
When your customer is ready to pay for something on your online store, they are redirected to their debit or credit card provider’s 3D secure page where they will either be asked for a password (which they’ll have set up already with their bank) or will need to enter an authentication code (which will be automatically sent to their confirmed mobile phone number).
This is the added layer of security – even if someone obtains stolen credit card information, they still won’t be able to make any purchases online without knowing the authentication code. So having 3D secure enabled on your online store reduces instances of fraudulent payments, protecting both your business and your customers.