In today’s hyper-connected world, we do almost everything online, including shopping, paying bills, booking movie tickets, and even transferring money to friends and family. But with the increase in online transactions comes an uptick in fraudulent activities, which can lead to unauthorized charges on your credit or debit cards.

This is where 3D Secure has become an essential tool to protect your online payments.

What is 3D Secure?

3D Secure is a security protocol designed to prevent online fraud when making a purchase. It adds an additional layer of security to the online transaction by requiring the user to authenticate their identity before the payment goes through.

The protocol was developed by the major card schemes, Visa and Mastercard, with the aim of enhancing the security of online transactions and reducing the risk of chargebacks and fraudulent transactions.

How does it work?

When making an online transaction, the user is redirected to a bank’s website or mobile app, where they are required to enter a One-Time Password (OTP) or a personal identification number (PIN) that is sent to their registered mobile number or email. The OTP can only be used once, making the authentication process more secure.

This additional step verifies that the user who is making the payment is the legitimate cardholder and not someone who has stolen the card details. It acts as a safeguard against fraudulent activities, and the user can proceed with the payment once the authentication process is complete.

Advantages of 3D Secure

Protects against fraud: 3D Secure adds an additional layer of security to the online transaction, reducing the chances of fraudulent activities. It helps to prevent identity theft, unauthorized access, and phishing scams.

Provides peace of mind: Since the user is required to authenticate their identity, they can be assured that their financial details are safe and secure when making online payments.

Reduces chargebacks: Chargebacks occur when a transaction is disputed, and the funds are returned to the cardholder. This can result in additional fees for the merchant, affecting their business negatively. 3D Secure reduces the risk of chargebacks and ensures that the transaction is genuine.

The Bottom Line

The rise of online transactions has made it essential to prioritize security to avoid any fraudulent activities. The 3D Secure protocol is one such security measure that serves as an added protection layer to the online payment process.