3D Secure - a financial “must”?
News Aug 21, 2020
If you have a business in Europe, you might have heard about a list of PSD2 requirements, one of which is Strong Customer Authentication (SCA) for every payment made within Europe.

Since nowadays online shopping is reaching even new heights, an additional level of safety must be ensured.

3D Secure is an authentication system that reduces fraud for card payments and provides protection between three parties: business, acquiring bank, and issuing bank. Even though it may seem as an extra-step concept, technology provides and supports SCA requirements and has proven to significantly reduce the number of fraudulent payments. Let us break down to you how it works and why it is essential.

When customers purchase a product or service, they are entering their card data. Businesses require the card to belong to the specific cardholder to make sure that the transaction is not fraudulent. Otherwise, the product or service can be provided to the wrong people or companies, which, in turn, increases the risk of possible disputes between the parties.

Therefore, most of the gateway and issuer bank systems are integrated with the 3D Secure systems. Merchant Plug-In (MPI) does not allow the transaction in the gateway to proceed without an identity check. However, from the card issuer’s side, the Access Control Server (ACS) verifies, if the card belongs to the correct cardholder.

The identity authentication process is something that is important to all the clients, that is why DECTA provides truly user-friendly solutions, while the recent EMV 3D Secure system ensures security and seamless experience.

Regulatory Technical Standards for Strong Consumer Authentication (RTS for SCA) has defined transactions where additional authentication could not be required:

· Low-value transactions

· Recurring transactions (regular payments initiated by the same merchant)

· Merchant Initiated Transactions (irregular payments initiated by the same merchant)

· Low-risk transaction based on transaction risk analysis

· Transaction at trusted merchant

As of this week, DECTA has migrated its Mastercard system and current processing clients to the 3D Secure v.2.1., which follows all the PSD2 requirements. Moreover, now DECTA provides both 3D Secure versions – 3DS 1.0.2 and 3DS 2.1. Find out more on https://www.decta.com/

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