When a customer makes an online purchase with a 3D Secure-enabled card, they are prompted to complete an additional authentication step before the transaction is finalized. This step often involves entering a one-time password (OTP) sent to their registered mobile number, or responding to a push notification from their bank’s mobile app.
The original version of the protocol, known as 3D Secure 1.0, typically redirected customers to a separate page where they would enter their password or OTP. Although effective, this process sometimes caused delays and could lead to cart abandonment.
The updated version, 3D Secure 2.0 (or EMV 3DS), addresses these issues by enhancing the user experience and security measures. It enables more seamless authentication, allowing the card issuer to leverage a wider range of data points to assess the transaction’s risk level. This means that for low-risk transactions, additional authentication may not be necessary, streamlining the checkout process.
Moreover, 3D Secure 2.0 is designed to comply with regulations such as the European Union’s Payment Services Directive 2 (PSD2), which mandates Strong Customer Authentication (SCA) for online transactions. This updated protocol supports various authentication methods, including biometric verification (e.g., fingerprint or facial recognition), ensuring a more secure and user-friendly experience.