The increase in online fraud attacks is rising at an alarming rate. However, the good news is that preventive measures can be taken to protect both your business and clients. 3D Secure is one of the active fraud prevention measures merchants can take to minimize the risk of unauthorized charges your e-commerce business receives.

3D Secure, also is known as 3DS, was launched in 2001 by Visa. Over the years, the different card brands have also incorporated 3DS Payment details; we will discuss these platforms later. Let’s first define what 3D Secure is.

What is 3D Secure?

It is an extra layer of protection worked through when taking CNP (Card Not Present) payments. 3DS provides your customer-base with an additional authentication step just before they complete an online purchase. It ensures your clients have authorized payment card users to minimize the risk of payment fraud.

The Difference between Regular CNP Payments and 3D Secure Payments

It is nearly impossible to run an online store without accepting CNP payments. Since the merchant is physically unable to inspect the card, this kind of payment is quite susceptible to fraud. Card Not Present fraud has been on the rise for a while now. However, 3DS payments are here to prevent that.

The main difference between regular CNP payments and 3D Secure payments is that when making a payment, the buyer is directed to the card issuer’s website. On that page, the buyer will have to key in a password. Afterward, an authentication code is sent to the card holder’s phone number.

It is not until the customer provides the correct details that the card issuer approves the payment, and then they are redirected back to your site. This process is quite fast and minimizes card not present fraud by a significant percentage.

3D Secure payments are quick and simple. If a cardholder isn’t familiar with the details of the account, there is no way payment will be approved for their online purchase. This, in turn, reduces chargebacks on your end.

The Different 3D Secure Platforms

As mentioned earlier, Visa was the first to launch 3D Secure, and it is referred to as (As Verified by Visa). MasterCard and American Express also have 3D Secure authentication known as Mastercard Secure Code and American Express SafeKey.

The Importance of 3D Secure Payments for High-Risk Merchants

3D Secure payments are quite beneficial for high-risk merchants. Payments verified through successful 3DS authentication significantly reduces unnecessary payment processing costs and customer service complaints. Also crucial for a high-risk merchant account, if you consistently keep chargeback percentages low, your business is more likely to qualify for lower processing fees.

3DS payments direct the liability to the card provider. Should a client claim that they did not authorize a purchase and go through the authentication process, the card provider is mandated to refund the client. This keeps the chargeback of your merchant record, a fabulous detail for high-risk businesses.

Protect Your Business Today with 3D Secure

Interesting in learning more about 3D Secure payments? Payment Savvy is an active leader in the high-risk merchant arena with over 80 years of combined processing experience.  Our savvy team will create a custom merchant account for your business. Our payment gateway utilizes 3D Secure authentication as a standard measure and is also PCI Level 1 compliant. Reach out to us today to set a no-hassle demo to review our payment fraud prevention tools and discuss your payment needs and goals.

Charged with ensuring our prospects and customers always receive an A+ experience, Lauren comes to Payment Savvy with skill-set that is second to none. Having spent over a decade in the accounting realm, she diligently works to guarantee our clientele obtains excellent payment solutions and customer support. With additional experience in sales and marketing, Lauren’s well-rounded expertise makes her an invaluable part of our Savvy Squad. She is a regular staple at trade shows and conventions across the country, next time you see her – stop by and say hello! We promise she doesn’t bite!