Needless to say, world trade and global businesses have flourished rapidly all around us. This makes online card (debit/credit) payment almost impossible to avoid in our lives. Even though online card payment has made our transactions fast and easy, it has also left us vulnerable.
Because of the access we provide to our confidential and sensitive transaction data. This vulnerability poses a potential cyber threat to users’ data and payment transactions. But rest assured, because this is where the 3DS 2.0 comes into play to say the day. Want to explore more about the 3DS 2.0 authentication protocol? Keep reading!
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3DS 2.0: Force Field For Transactions
3DS 2.0 is an authentication protocol tasked with providing an extra layer of protection for online card transactions. In layman’s terms, 3DS 2.0 asks the cardholders for an additional password, an OTP (one-time passcode), and biometrics to initiate a transaction.
The name 3DS 2.0 is virtually an abbreviation for “Three Domain Secure” upgraded version (indicated by 2.0). Three Domain Secure represents the 3-step verification offered by the protocol that ensures the safety of the data and transaction.
So, How Does It Work?
Developed by Visa, represented as Verified by Visa, the 3DS 2.0 authentication protocol provides security via a pop-up window or app user interface. Similar to the firewall security system for networks.
Along with providing security, the 3DS 2.0 protocol provides preventive measures against fraud and liability problems. Because the authentication is data-driven to throw off the scammers.
Additionally, the protocol ensured communication between the cardholder and service provider. To better understand how the 3DS 2.0 authentication protocol works, take a look at the pointers listed below.
- Commence transaction by entering card details.
- The 3DS authentication is required, and it sets off the issuer of your card.
- The server requests the issuer to authenticate the cardholder.
- A low-risk transaction is approved seamlessly.
- When it is a high-risk transaction, the issuer sends a prompt, like a message or OTP.
- The customer or the cardholder is expected to complete the prompt.
- Now the issuer verifies your identity, and your transaction is approved.
- The transaction process is complete.
Why You Need 3DS 2.0!
With various in-built authentication, customers might wonder if 3DS 2.0 is really necessary. But you can never predict where it can go wrong. So, there is no harm in having an extra layer of protection. Because you can’t take chances with financial responsibilities.
Also, the 3DS 2.0 protocol is not just an extra layer of protection. It offers various benefits, some of which are listed below.
- Risk evaluation by analysing user data such as device information and location.
- Reduce cart abandonment rate, as it increases the reliability of merchants.
- Free customers from liability, as the issuer is also responsible for authentication.
- Unlike its predecessor, 3DS 2.0 provides fraud prevention.
What’s New!
As mentioned before, 3DS 2.0 is an upgraded version of 3DS. Although both versions offer similar authentication security, there are some key differences in working principles and customer engagement. So here’s a comparison between the two protocols.
Authentication
While the 3DS protocol redirects the customer to a different authentication page, the 3DS 2.0 is in part a window. Making the 3DS 2.0 protocol comparatively less disruptive than the 3DS protocol.
Page Response
The 3DS protocol lacks mobile integration, so it offers a non-responsive authentication page on mobile devices. But the 3DS 2.0 protocol is optimised for mobile devices, providing seamless services.
Availability of Cards
The 3DS protocol predominantly promotes card-not-present type of transactions. But the upgraded 3DS 2.0 protocol supports card-not-present, card-on-file, and mobile transactions. Obviously, making the 3DS 2.0 protocol more efficient.
Conveniency
The 3DS protocol doesn’t allow any kind of frictionless (No User Action) transactions. Meanwhile, the 3DS 2.0 allows frictionless transactions when it deems them low risk. Thereby, making the 3DS 2.0 protocol more convenient.
Customer Experience
Customers might think frictionless (No User Action) is more convenient, and make online card transactions seamless. But a little inconvenience outweighs the need for secure payment and safe user data usage. However, the beauty of the 3DS 2.0 protocol is that it allows low- risk, low-cost transactions to process without authentication. Additionally, this protocol is optimised for mobile and in-app usage, opting for flexibility.
Another notable mention in 3DS 2.0 functionality is its compliance with online card transaction rules and regulations. Thereby making customers free of penalties and liabilities. Even if there is a liability, it falls on the issuer due to ineffective authentication, not the customer. Bottom line is, in addition to providing secure online card transactions, the 3DS 2.0 protocol ensures customer satisfaction and enhanced experience.
Protect What Matters!
As much as you want to think otherwise, the security of online card payments has always been at risk. The scams, fraud, theft, illegal activities, and piracy have become more common while carrying out online card payments.
So it is essential to digitally arm ourselves with the 3DS 2.0 protocol to make sure that the payments are securely transacted. Because it is your responsibility as a user to protect what matters.
