EMV 3DS is a global payment security standard. You can think of it like the chip & pin on your physical credit card, but for card-not-present (CNP) purchases.
Often known by its branded names (ie. Visa Secure, MasterCard Identity Check, American Express Safekey and Discover Protect Buy), 3-D Secure is a protocol that enables card issuers to authenticate consumers, secure purchases, and prevent CNP fraud.
Also referred to as 3DS2, EMV 3DS allows card issuers to authenticate consumers without adding friction to the payment process. Everything happens behind the scenes using risk-based-authentication.
When a consumer is successfully authenticated, PAAY shifts the chargeback liability off of the merchant and onto the card issuer. Furthermore, authorization rates are proven to be higher when the consumer is authenticated.
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The Payment Services Directive 2 is a banking regulation issued in the European Economic Area (EEA) by the European Banking Authority (EBA). PSD2 is an open banking initiative that seeks to improve consumer protection, boost competition, and innovation. The legislation states that merchants must use Strong Customer Authentication (SCA) on e-commerce transactions when the acquirer and the issuer are both in the EEA.
Unlike the frictionless authentication, SCA doesn’t happen behind the scenes. Instead, it requires consumers to verify their identity using two of three elements:
This is known as two-factor authentication.
As of now, EMV 3DS is the only tool available to perform SCA on purchases made via credit card to comply with PSD2.
PAAY supports SCA by enabling the use of two-factor authentication. Its flexibility allows issuers to set authentication preferences using their preferred risk and regulatory factors. In other words, issuers decide how the customer will be authenticated by using a one-time-passcode, knowledge-based questions, or biometrics.Schedule a Free Consultation
As a certified provider of EMV 3DS, we’ve built a simple, secure, and seamless 3DS solution for merchants and payment service providers.
Start protecting your online sales today. PAAY's 3-D Secure platform and developer documentation make it ease to install PAAY and monitor transaction.
Stay Competitive and grow your business with PAAY. Our Partner Platform empowers payment service providers to offer 3DS to their merchants at a wholesale rate.
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