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Comprehending 3D Secure Version 2 technology

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Noire
Comprehending 3D Secure Version 2 technology

3D secure Version 2 is the latest authentication protocol for card payments that are made online. It is designed to enhance 3D secure 1 by focusing on the pain points of the old protocol and presenting a much integrated and smoother user experience. Card registration and password are no longer a necessity, which is totally in contrast to 3DS1.


Additional sales with fewer frictions


With the frictionless flow of 3DS2, you can authentic yourself without being disputed. This painless and quick checkout process will profit cardholders. Merchants can anticipate nearly 70 percent less cart abandonment, as stated by Visa.

 

Extra data = better authentication accuracy


Issuers can accurately find out the risk of a transaction with more data collected. Thus, a case study done by Visa shows that around 95 percent of the transactions are authorized right away and cardholders will face less than 40 percent fraud.

 

Mobile integration


Mobile wallets were anticipated to turn out to be more accepted than credit and debit cards by 2020, and that is what is exactly happening at the moment. Gone are those days wherein badly scaled confronting screens and browser redirection was often an issue. 3D secure version 2 adds mobile app authentication support. This implies that challenge screens can be displayed from within the app while feeling and looking just like an element of a mobile app. 


3D Secure version 2 flow


The messages flow between the 3DS server, the cardholder, the directory server and the bank. To sum up, information regarding the transaction, the mobile device or browser of the cardholder and the account history of the cardholder with the particular merchant are collected and finally forwarded to the bank. Replies are returned using the same route to the cardholder. Challenge messages will happen between the issuing bank and the cardholder directly if and when necessary. 


Known issues with 3D secure 1


  • Certain users were not able to see the 3DS authentication page on the device. 
  • When used on a mobile browser, numerous compatibility issues occurred during the authentication process. 
  • Users often felt that the additional step was not necessary and started to get irritated and gave up on what they purchase. 
  • The loading speed on the authorization page caused problems and frustration. 
  • Users were not able to find the popup window’s authenticity, which often led to suspicion and resulted in the abandonment of the transaction. 
  • 3D secure 1 was non-friendly and it is actually considered a security hazard. 


In addition to fulfilling the SCA [strong customer authentication] compliance that comes under PSD2, there are several other benefits to the latest 3D secure version 2 protocol, particularly from the viewpoint of mobile payments. The enhanced design significantly boosts the user experience on a mobile device by being compatible with in-app transactions and mobile wallet applications.


Joseph Nair is the author of this Article: To know more about please visit the Website: Noire.com

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