The 3D Secure system is an identification and security protocol used in online credit and debit card transactions to add an extra layer of authentication.
Developed by Visa and Mastercard to reduce the risk of fraud, it requires buyers to enter a code or password to certify that they’re authorized to carry out the transaction.
Originally created in 1999, the 3D Secure system is available for a variety of credit and debit cards, including Visa, Mastercard, American Express, Discover, and others. However, depending on your region, this security protocol may not be mandatory, for merchants or for banks.
In other words, the 3D Secure system is an additional guarantee of security for customers, which some merchant sites have the option to choose to use or not.
If the online store is equipped with this payment process, 3D Secure logos such as "Verified by Visa" or "Mastercard SecureCode" will appear on its pages.
In this case, the purchase process is as follows:
- At checkout, the buyer pays online, entering their credit card number, expiry date, and card verification value (the three digits on the back of the card).
- A second window opens. This window contains the logo of the customer's bank and is used for authentication. To do this, the bank sends a text with a one-time code to the buyer. All the customer has to do is enter the code on the merchant site to confirm the transaction.
However, for this process to work, the bank must have the customer's correct telephone number.
This is shown on the 3D Secure identification screen. Be sure to check this and inform your card issuer if the number changes.
The 3D Secure system has considerably promoted the growth of online sales. In fact, before the system was introduced, shoppers were sometimes reluctant to finalize their purchases for fear of scams and fraud attempts.
Now, they feel better protected in their online payment transactions.
However, you should be aware that it’s possible to dispute a payment transaction carried out using the 3D Secure system. If you notice a transaction on your statement that you didn’t initiate, simply contact your credit card customer service or bank advisor.
It’s then up to the card issuer to provide proof of 3D Secure authentication. If the issuer provides this proof, you’re automatically presumed to have initiated the transaction and will likely be held liable up to a certain amount, depending on the specific regulations of your region and card issuer.
On the other hand, if the issuer is unable to prove the use of the 3D Secure system, the transaction may be contested, and the issuer is obliged to reimburse you in full.
