What is 3D Secure?
3D Secure or 3DS is an authenticated payment system aiming to improve the security for online purchases. Developped by Visa, MasterCard, and AMEX, it is widespread in Europe and it is used by thousands of online retailers to fight fraudulent transactions. The aim of 3D Secure is to add an additional level of identification by asking the user to provide a password before completing an online transaction.
Why use it?
3D Secure aims to reduce fraud in online transactions and to provide additional security for the merchants who choose to implement it. Typically, the transactions certified by the 3D Secure system protect the retailers from chargebacks by ensuring the liability shift to the card issuers who are ultimately responsible if the transaction is fraudulent.
Dynamic 3D Secure: our solution to fight online fraud and optimize conversions
HiPay recognizes the value of 3D Secure in fighting against chargebacks and is aware that many retailers are reluctant to use it because it can cause cart abandonment. In reality, each additional stage in the payment path, such as authentication or fraud protection, can potentially discourage the user to complete his transaction.
HiPay created a Dynamic 3D Secure solution to allow retailers to use a risk-based approach when using 3DS. Our Fraud Protection module (available with the Enterprise platform) can activate 3DS on a case-by-case basis according to the risk rating assigned during the transaction. This dynamic approach provides greater flexibility in transaction management and increases the conversion rate for transactions identified as low risk.
For further information about how to integrate, use or handle it, please check out our Developer Portal for more information.