July 6, 2020

3D Secure 2.0 (EMV 3DS) – The next generation of e-commerce authentication service

Electronic and mobile commerce are the highest business growth channels for retailers worldwide in the current age of digitalization, all driven by the constantly increasing number of customers shopping online and demanding a more secure and seamless payments experience.

Prior to the development of 3D Secure, cardholders active in e-commerce were not sufficiently protected, and many were deterred by bad payment experiences. In response, the electronic payment systems introduced the three-domain protocol model (3D Secure) as an additional layer of security when making online credit and debit card transactions. The basic concept was to tie the financial authorization process to online authentication using an access control server.

Despite offering the needed protection to cardholders, the initial version of 3D Secure was faced with many challenges and complaints. Starting from the enrollment process, which very often was complicated and required information that was not easily reachable by the clients, continuing with every transaction which included a break on consumer journey by redirecting the cardholder from one page to the other, the whole 3D Secure experience became quite a hassle for the cardholder. All this dissatisfaction led the industry leaders towards the introduction of a new 3D Secure generation, often referred to as 3D Secure 2.0. Officially, the name for the new specification is EMV 3DS as it is centrally governed by EMVCo, as opposed to the first version which was specified by each brand on their own. 3D Secure 2.0 is considered as the next generation of authentication service for the e-commerce world.

Quipu Processing Centre (QPC) hosts the platform called Access Control Server (ACS) that is certified for EMV 3DS for both VISA and MasterCard payment systems, and fully supports financial institutions on their certification and implementation of EMV 3DS.

EMV 3DS has several benefits that recommend the service enrollment with priority:

  • Additional security layer for internet payment card-based transactions
  • Liability shift benefits for issuers participating in the program
  • Risk-Based Authentication
  • Reduced checkout times
  • More authentication methods available
  • Reduced customer service costs for issuers (due to less inbound calls or inquiries for resetting passwords)

Do you want to know more about EMV 3DS? We will be honoured to help you out with your enhanced online payment security process.

Reach us for a discussion and we’ll get back to you shortly with our assessment.