What to Know About Credit Card Security Technology: 3D Secure (3DS)

Credit Card Security

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The recent global isolation caused by the COVID-19 pandemic increased credit card usage. And as the world is slowly opening again, people have been itching to use their credit cards to book flights, make hotel reservations, or participate in group tours.

Whether it’s shopping, travel therapy, or just making your regular online grocery purchase, the credit card is an essential tool to complete the transaction. Businesses need to work with high-risk merchant account providers to offer customers multiple payment options that are not just convenient but secure as well.

How do you feel about online credit card transactions? Are you confident that your card details are secure? Let us explore credit card security to understand it better.

3D Secure

3D Secure (3DS) is a security protocol designed particularly for online credit and debit card transactions as an added layer of security.

Created by CA Technologies (formerly Arcot Systems), the technology was first used by VISA to upgrade its internet payment security and then adapted by Mastercard and other major credit card providers.

3D Secure enhances the security measure every time a card transaction is initiated online. When 3D security is enabled, it will require the card owner to validate every transaction with a PIN.

3D translates as “three domains,” referring to the debit card or credit card issuer, the retailer receiving the payment, and the 3DS infrastructure that plays as the secure-go medium for both the merchant and the consumer.

When making an online transaction, 3D Secure Technology will determine if you are the true owner and if further safekeeping is necessary.

You will be redirected to a page to input your PIN, the one-time code sent by your bank via SMS, the one you need to enter to complete the online transaction.

The Benefits of 3DS

Fraud prevention is the ultimate advantage of 3DS, giving lawful card owners the security and confidence of doing safe business with you.

With improved customer confidence and positive customer experience, you foster loyalty, increase brand awareness, and boost sales with referrals. With 3D Secure, merchants are offered the following benefits:

Chargeback Protection

  • Suppose a fraudulent transaction is verified via 3DS; the liability of the transaction is passed onto your issuing bank. If you use Verified by VISA or MasterCard SecureCode, for example, and a chargeback occurs, you are safe from chargeback liability. Review and understand the documentation provided by your issuing bank regarding 3D Secure.

Interchange Fees

  • 3D Secure may give you access to lower interchange fees and your business may benefit from payment terms with your bank.

Customer Satisfaction

Many customers will feel more confident making online transactions knowing their data is protected through the extra level of security provided by 3D Secure.

Understanding credit card security features can help your customers understand the possible issues that may happen during online transactions.

With this, you will be able to educate them on the benefits and the workaround should issues arise.

To know more about 3D Secure Technology and to ensure that your business and customers are protected, talk to experienced merchant services providers.

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