3DS (3D Secure)

3DS (3D Secure) is an additional security protocol developed to enhance the security of online transactions made with credit and debit cards. The term “3-D Secure” comes from the three parties involved in the process: the cardholder, the issuing bank, and the merchant.

Here’s how 3DS works:

1. Cardholder Authentication: When you make an online purchase and enter your card details, the transaction is redirected to the 3DS server.

2. Verification Request: The 3DS server communicates with the issuing bank, which then requests additional verification from you. This might be a password sent via SMS, a code from a banking app, fingerprint scanning, or facial recognition if you’re using a mobile device equipped with such technologies.

3. Authentication: You provide the requested information to confirm that you are the legitimate owner of the card.

4. Confirmation: If the information you provide is correct, the issuing bank confirms the transaction. If the information is incorrect or missing, the transaction may be declined.

5. Completion of Purchase: After successful authentication and confirmation, the transaction is completed, and the merchant is informed to proceed with the processing.

3DS version 1.0 was initially introduced in the early 2000s, and later it was updated to version 2.0, which includes enhancements like support for mobile payments, biometric authentication, and the ability to make frictionless payments to improve the user experience and reduce the number of transaction abandonments due to verification complexity.

3DS helps to reduce the likelihood of fraud with stolen card details, as a fraudster would need to pass through additional layers of verification to make a purchase.