INFORMATION FOR MERCHANTS ABOUT THE NEW 3D SECURE 2.0 PROTOCOL
The announcement of the new 3D Secure 2.0 process (3DS 2.0) by the EMVCo has unsettled many players in e-commerce in recent months. On this page you will find everything you need to know about the new
procedure and what you have to do to be prepared for the launch of 3D Secure 2.0 on September 14, 2019.
3D Secure and 3D Secure 2.0 at a glance
The globally standardized 3D Secure Protocol (3DS), which was introduced in 2002, offers merchants and consumers additional security for credit card transactions. With this procedure, online shoppers verify themselves to their card-issuing bank (issuer) as legitimate cardholders. In contrast to a conventional credit card payment process on the Internet, 3D Secure requires an additional security code. This makes the misuse of credit cards much more difficult.
Essentially, 3D Secure 2.0 is a refinement of the previous 3D Secure protocol. With each credit card order, up to 100 data points will be be transmitted to the issuer; based on these data points, the issuer performs a real-time risk assessment. If a transaction is classified as low-risk, it can be authorized directly and without further interaction by the buyer. However, if fraud is suspected, the buyer is requested to confirm his identity again, for example by push-TAN. The risk assessment takes place in the background and is not perceptible to the buyer. The collection and forwarding of the necessary data takes place both via the merchant's shop backend and via the Payment Service Provider (PSP), which connects 3D Secure 2.0 to the respective shop.
The declared aim of introducing 3D Secure 2.0 is to meet the requirements of Strong Customer Authentication (SCA) and to establish it as the standard for electronic payment procedures from 14 September 2019. On the other hand, the introduction is also intended to reduce the percentage of cancelled purchases: Thanks to the individual, data-based risk assessment, transactions can be cleared directly and without further buyer interaction in approx. 95 percent of all cases - in future, the majority of purchases will therefore take place without entering a 3D Secure Code.
Monika Moser Bärlehner (Computop):
News about PSD II / 3D Secure
Sten Werner (Computop):
Improving usability for the 3D Secure 2.0 process - delegation of SCA
Frequently Asked Questions (FAQ) for Technicians and Integrators
Frequently asked questions (FAQ) for ecommerce managers and decision makers
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