3D Secure (3DS) is a security protocol that adds an extra layer of authentication for online credit card transactions. It often redirects the customer to their bank’s website or app to verify the payment via a code sent to their phone or a biometric scan (often branded as Verified by Visa or Mastercard Identity Check).

FAQs:

  • Does 3D Secure reduce fraud?
    Yes, dramatically. It also shifts the liability for fraud disputes from the merchant to the card issuer in many cases.
  • Is 3D Secure mandatory?
    It is mandatory in Europe (under SCA/PSD2 regulations) for most online transactions. In other regions, it is optional but recommended for high-risk payments.
  • Does 3D Secure hurt conversion rates?
    It adds friction (an extra step), so it can slightly lower conversion, but modern versions (3DS2) are much smoother and often invisible to the user.

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