What is 3D Secure 2.0?

With card-not-present transactions growing in number and diversifying in type, it’s become even more important for merchants to maintain robust security to keep fraud at bay. Fortunately, the rollout of 3D Secure 2.0 will help with just that! Keep reading to learn more about 3D Secure technology and what’s in store for version 2.0.

3D Secure 2.0 technology is a security protocol that adds a layer of protection to card-not-present transactions by verifying the customer’s identity. The newly-upgraded 3D Secure 2.0 brings merchants more value than ever before: It supports a wider range of card-not-present, e-commerce, in-app, mobile wallet, and MOTO (mail order telephone order) payments, and uses over 150 customer- and transaction-specific data points to authenticate transactions.

This robust data exchange reduces the odds that the customer will need to take the time to verify their identity. If customer verification is needed, the verification process is fully embedded into the payment flow, unlike 3D Secure 1.0, which redirects the cardholder to their issuing bank’s website. Whether you want to create rules around product pricing, shipping address, or a customer’s purchasing history, 3D Secure 2.0 gives you the flexibility to create customized product or industry-specific transaction rules you can use to gather and evaluate the type of transaction data that’s most important to you.

As a bonus, using 3D Secure 2.0 technology provides merchants with chargeback protection. If an authenticated transaction triggers a chargeback due to fraud, the liability shifts from your business to the issuing bank–  the customer’s bank is liable for that chargeback, not your business. Even if the issuing bank has not yet adopted the new technology, you won’t be liable for the chargeback!

Adoption of 3D Secure 2.0 technology is still in its early stages, and it’s expected that widespread adoption will start to pick up over the course of this year.