What is 3D Secure authentication?

As a distributor of POS solutions, you should be able to explain the benefits of 3D Secure authentication for your customers. Thanks to 3D Secure, online payments are safer than ever for businesses that sell products online, but also for their customers.

So, if your e-commerce customers ever wonder what 3D Secure is and why it’s important, here’s why…

3D Secure authentication explained

3D Secure, also referred to as 3DS, is a security protocol that will work as an additional layer of protection for e-commerce stores and their online shoppers. The security protocol is based on two-step authentication, where the customers verifies their identity in two steps.

The protocol is called “3D” because three domains are involved in the process. This is the 3DS platform which will function as a go-between for the retailer and its customer, the retailer that receives the money, and also the card issuer itself.

How does 3D Secure authentication work?

Strong Customer Authentication (SCA) rules defines how 3D Secure authentication works. To be able to authenticate the customer’s identity, the customer will have to enter something he or she has, knows or is, like a password, phone PIN code or fingerprint.

In most cases, the 3D Secure authentication will involve verification by using a one-time PIN code, which is sent as a SMS to the user’s phone. To be able to finish the transaction, the user has to enter this code.

The customer that makes the online transaction, will usually be redirected to a so-called 3DS page, and this is where the code is entered. The transaction will then be verified and processed.

3D Secure authentication can, in some cases, also find place through a mobile app or similar.

Why is 3D Secure authentication important?

3D Secure authentication includes several benefits for both e-commerce businesses and online shoppers. One of the main benefits is the reduced risk of fraud. The advanced technology makes it more difficult for criminals to misuse stolen cards. 

The e-commerce business can also benefit from more satisfied customers. When having a 3DS protection as “MasterCard SecureCode” or “Verified by Visa”, the customers knows that the online store is a safe place to make a purchase. This can also give an increase in sales.

For e-commerce merchants, 3D Secure authentication can also make is safer to accept card transactions from international customers located in other countries. 

Another benefit, is that 3D Secure authentication makes payment technically safer, thanks to server protection through SSL encryption.

  • Reduced risk of fraud
  • Increases customer satisfactions for e-commerce merchants
  • Safe international transactions
  • SSL encrypted servers

What is 3D Secure 2?

In 2019 a new version of 3D Secure was rolled out. This system is called 3D Secure 2 (3DS2), and will eventually be the mail authentication method for all online card based payments. 3D Secure 2 is improved, and gives a better user experience for the customer.

The main reason 3D Secure 2 was designed, was to make the checkout flow more seamless and frictionless. More and more customers shop online through their phone, and 3D Secure 2 makes authentication via cell phones easier.

Sell POS systems with 3D Secure authentication

As a distributor of POS solutions, it is important to offer safe systems with 3D Secure authentication included. At the same time, the POS solution should be user friendly and give the e-commerce store benefits on other areas as well.

There are many POS solutions on the market, but not all are designed to meet today’s requirements for safe and secure payments. So, which system should distributors choose?

Tidypay has 3D Secure 2.1 authentication

Most e-commerce businesses are looking for a POS solution that makes online shopping easy. This requires a user friendly checkout process for their customers. With the POS solution Tidypay eCom, online payments are safer and easier than ever before. 

One of the biggest benefits of Tidypay, is that the POS system can be integrated with other systems, like accounting systems. This will make bookkeeping less time consuming, as all payments and sales are registered directly in the accounting system.

Another benefit from using Tidypay, is 3D Secure 2.1, which makes sure that the e-commerce store can offer secure payments. With a number of smart and secure functions, Tidypay is the perfect POS system for both small, medium and large businesses.

Do you have any questions about 3D Secure authentication?

For distributors of POS solutions, it might be necessary to explain the benefits of POS systems to customers. When communicating with e-commerce merchants, it is essential to explain what benefits 3D Secure authentication will provide.

With 3D Secure authentication, the payment process will be safer for both the e-commerce store and their online shoppers. 

Do you have any questions about 3D Secure, or how this security protocol works in the Tidypay POS system? Feel free to contact us today, and we will help you find the perfect POS system.

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