3D Secure (3-domain secure), also known as Payer Authentication is a security protocol to prevent fraud in transactions with credit and debit cards online. Currently, this service is provided by Visa and MasterCard under the name Verified by Visa and MasterCard SecureCode, respectively.

Payer Authentication is a three-part process. The parties involved are the seller, the buyer (the bank that processes the payment) and card issuers (i.e., Visa or MasterCard).

How to Activate 3D Secure?

If you want to activate this service, the cardholder must register for it. The card user has to provide some personal data and then have to create a PIN number that will be assigned to his credit card or debit card. This feature allows banks to confirm the identity of the cardholder while buying goods and services.

It will automatically request for the 3D Secure Password each time a cardholder buys something online from participating retailers, and no transaction online would be able to take place without it. However, it may happen that despite being registered for Payer Authentication you will not be asked for the password when shopping online. It simply means that the retailer you are buying is not participating in the scheme.

Registration password for each card must be made independently and cannot be cancelled. However, in case, that credit card or debit card is renewed, there’s no need to record the replacement card again in the scheme. If card cancellation occurs, the service is automatically canceled along with it.

Online transactions made by cardholders who have not enrolled in Payer Authentication scheme will continue to use it normally.

Advantages of 3D Secure

One of the advantages of 3D Secure is that it reduces fraud. It also makes shopping/commerce safer online, nourishes brand loyalty, it is easy to use, customer confidence improves on websites and therefore increases spending online.

Service Restrictions

3D Secure has certain limitations: first, not all cards are currently participating in the program authentication payer scheme and secondly, it does not restrict chargebacks to happen but reduces the cost of fraudulent chargebacks.

Chargeback Liability of 3D Secure

As regards to chargeback liability, 3D Secure should be seen as an additional layer of protection provided by the card issuer. In fact, in the case of a fraudulent transaction, it becomes authenticated through 3D Secure, is very likely that liability will shift to the acquirer. In short, retailers are protected against misleading chargebacks since the liability is transferred.