EMV 3-D Secure (3DS 2.0) is a security protocol that allows card-issuing banks to authenticate consumers during online purchases without adding friction to the checkout experience. It's the next generation of the original 3-D Secure protocol, designed for the modern ecommerce landscape.
Known by Many Names
Each card network has its own branded name for 3DS:
- Visa: Visa Secure
- Mastercard: Mastercard Identity Check
- American Express: American Express Safekey
- Discover: Discover ProtectBuy
How It Works
When a consumer makes an online purchase, 3DS communicates between the merchant, the card network, and the issuing bank in real-time. Using risk-based authentication, the protocol analyzes dozens of data points to determine if the transaction is legitimate. Low-risk transactions pass through seamlessly, while higher-risk transactions may prompt additional verification.
The Liability Shift
One of the most valuable benefits of 3DS is the liability shift. When a transaction is authenticated through 3DS, the fraud liability shifts from the merchant to the card issuer. This means merchants are protected from chargeback codes including Visa 10.4, Mastercard 4837, and Mastercard 4836.
Authorization Rate Improvements
Data from the card networks shows significant improvements in authorization rates when using 3DS 2.0:
- Visa reports an 8% authorization rate uptick
- Mastercard reports an 11% improvement
PAAY provides EMV 3DS authentication for Visa, Mastercard, American Express, and Discover transactions, giving merchants comprehensive coverage across all major card networks.
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