DEFINITION
Three-Domain (3D) Secure
Three-Domain Secure, or 3D Secure, is a security protocol designed to protect online credit and debit card transactions by adding an additional layer of authentication. In practice, this means that the cardholder will have to go through a quick identification process before any transaction can be finalized.
This is even reflected in the name. Namely, the three domains are the merchant’s domain, the acquiring bank’s domain, and the issuing bank’s domain. For the transaction to go through, all three domains must validate the process.
Synonyms
3D Secure
Acronyms
3DS
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Synonyms
3D Secure
Acronyms
3DS
Examples
A person wants to buy something online with their credit card. Before the transaction goes through, they are redirected to their bank’s secure page where they are prompted to enter a one-time password that has been sent to their email or phone number. The transaction will only go through after they have entered this password, thus ensuring that the transaction wasn’t initiated by a threat actor who simply stole the credit card.
FAQ
How does 3D Secure improve online payment security?
3D Secure ensures that the cardholder is who they claim to be by requiring authentication via a password or biometric data. This makes it harder to abuse stolen credit cards.
What is the difference between 3D Secure 1.0 and 3D Secure 2.0?
3D Secure 2.0 is the more robust and modern version of the two, as it’s able to seamlessly integrate with different apps and platforms and rely more on biometric authentication. 3D Secure 1.0 on the other hand relied on redirects and separate security pages, as in the example, which lead to more customer frustration.
Is 3D Secure mandatory for online payments?
In some jurisdictions, such as in the EU, 3D Secure is required under the Strong Customer Authentication (SCA) guidelines as part of the Payment Services Directive 2 (PSD2). In other jurisdictions, this might not be the case.
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