3D Secure 2.0: The Future of Digital Payment Security is Now


With more devices becoming payment devices, digital commerce is now the fastest-growing payment area. Consumers now have far more options for payment than ever before, whether through an internet browser, mobile application, or connected device. However, whenever a consumer makes a digital purchase rather than a traditional store purchase, verifying the transaction and the consumer's identity becomes an increasingly important and even difficult task. According to industry experts, half of all digital commerce transactions that are declined due to suspected fraud are actually legitimate.

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Paying online with credit/debit cards involves the transmission of sensitive information, so special precautions must be taken to ensure customer safety. For the same reason, it is more important than ever that the industry invests in new approaches to preventing fraud while also maintaining the speed and convenience that customers enjoy about online shopping. Helping merchants and issuers distinguish between good and bad transactions will reduce fraud while allowing transactions to continue at the speed of light.

Following the Payment Services Directive in the European Union (PSD2), the European Union (EU) has imposed stricter requirements on Internet payment systems. 3D Secure 2.0 is a significant step forward in this effort, as it will help prevent fraud and accelerate digital commerce by providing fast, secure authentication. This will improve customer protection all over the world.

It's important to note that 3D Secure is provided by your bank, not FastComet. com. It adds an additional layer of security to all online transactions. 3D Secure is also known as "Mastercard SecureCode" or "Verified by Visa."

What is 3D Secure?

VISA took the initiative in 2000 to develop a procedure to make using credit cards on the Internet more secure. The "Verified by VISA" technology is used by the company itself. Other credit card companies have followed VISA's lead and implemented the security mechanism as well. For different credit card companies, 3D Secure is known by different names.

When you go to pay on a website and enter your payment information, you are redirected to the 3D secure web page of your debit or credit card provider. Normally, you will be asked to provide one of the following:

  • the password you previously established with your bank; 

  • a one-time authentication code sent to your mobile phone.

Sometimes you won't be asked for any information at all. After entering the correct information and the payment is approved by the card provider, you will be automatically redirected to the website with an order confirmation message. It's a quick and easy procedure.

What are the Benefits of 3D Secure?

Prior to 3D Secure, using your credit card on the Internet was much easier but far less secure. All you had to do was enter your credit card information and then confirm possession of the card by entering your three-digit security Card Validation Code (CVV, CV2, or CVV2 code) found on the back of your card.

With the continued growth of eCommerce, an increasing number of people will need to use online payment gateway. Typically, there has been an increase in interest in online fraud. Phishing and social engineering are two common methods used by criminals to gain access to data. 3D Secure's goal was to prevent such fraud.

In addition to the information on the credit card, the 3D Secure authentication procedure necessitates the use of additional information – a password known only to the card owner. Because the card transaction requires two steps, this method is known as two-factor authentication.

When using static passwords, there is a security risk. Your security is jeopardized if a third party obtains access to the password. As a result, dynamic methods that adapt to each process are the better option. A good example is when you receive a text message containing a unique security code that was generated using cryptic procedures and can only be used once for that specific payment.

Even though security was improved, both customers and online retailers were dissatisfied with the first version of 3D Secure. The website where you enter the additional security factor was poorly designed, but more importantly, the application and use of the required password were not as clear as they should have been. Furthermore, the entire procedure could not be integrated into mobile applications. Some customers were dissatisfied and even canceled orders, putting pressure on online retailers.

The new and improved 3D Secure (3DS2) version addresses these issues while also improving security. All of the new features are also in line with the new EU Payment Services Directives. Furthermore, with the new version of 3D Secure, all credit card companies are responding to technological developments. Modern devices, such as smartphones and tablets, use data authentication methods (fingerprint or face recognition).

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Understanding 3D Secure 2.0 Technology

The most recent 2.0 version of the technology enables a real-time, secure, information-sharing pipeline that merchants can use to send an unprecedented number of transaction attribute that the issuer can use to more accurately authenticate customers without requiring a static password or slowing down commerce.

3D Secure 2.0 was created specifically for online retailers to integrate the procedure into the online payment processors, resulting in a pleasant shopping and user experience for each customer. This new version should also be an intelligent system. The authentication method adapts to the risk – for small payments, lower security requirements apply, while for large payments, higher security requirements apply. In addition to working with bank applications, 3DS2 can be used for mobile payments.

What Customers Should Expect

Customers will find that, while the entire process will take a little longer, the 3DS2 process will make it easier and more convenient to pay online. They can now take advantage of a more modern and secure process. Customers should be aware of the following:

Registration: To use the second version of 3D Secure with your credit card, you must first register with your bank. It is the bank that issued your credit card that is liable.

Installation: Banks are likely to use applications in the future to send the 3D Secure code or request biometric data.

Finalizing: When you pay, you must have both the credit card and the smartphone on hand.

Note: Even with 3D Secure, you should exercise caution when using your credit card on the Internet. Enter the data only when you are certain you are on the correct website. A valid SSL Certificate shows that the website can be trusted.

Implications for eCommerce

If your company is based in the EEA and accepts eCommerce transactions or other digital payments from the EU, the EU's PSD2 requires that online payments meet special security standards beginning September 14, 2019. 3DS2 satisfies these requirements. Online merchants must contact their payment service provider in order to use the procedure (PSP). The PSP should provide a suitable technical solution for retailers to implement in their online stores.

Merchants should make 3D Secure available in their online stores. The new system is far more user-friendly, takes place entirely on the online merchant's website, and boosts consumer trust in eCommerce. This, in turn, should result in more conversions and, as a result, more sales.


When it comes to online payments, security should always come first. When compared to its predecessor, the 3D Secure 2.0 improves on everything. Online payments are becoming more popular, and such security updates are unavoidable. The enhanced security standards make the Internet more secure, reduce online fraud, and make customers and marketers feel more secure.

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Created on Jan 11th 2022 06:41. Viewed 72 times.


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