EMV 3D Secure v2 (3DS2)

What is EMV 3D Secure v2?

EMV 3D Secure prevents unauthorized eCommerce transactions by providing an additional authentication layer, and a much better user experience for customers.

EMV 3D-Secure – also called  “3DS2” or “3D 2.0” – is an evolution of the existing 3D-Secure version 1 programs:  Verified by Visa, Mastercard SecureCode, AmericanExpress SafeKey, Diners/Discover ProtectBuy, and JCB J/Secure.

It is based on a specification developed by EMVco. EMVCo aims to facilitate global interoperability and acceptance of secure payment transactions. It is overseen by EMVCo’s six member organizations – American Express, Discover, JCB, Mastercard, UnionPay and Visa – and supported by dozens of banks, merchants, processors, vendors and other industry stakeholders who participate as EMVCo Associates.

How is it different from 3D secure version 1?

One of the key differences in version 2 is that the issuer can use a large amount of data from the transaction to determine the risk of the transaction (risk-based analysis).

For low-risk transactions, issuers do not challenge the transaction (e.g., do not send an SMS to the cardholder) although they authenticate the transaction (fluid transaction – without strong authentication).

For high-risk transactions, issuers will require the cardholder to authenticate with an SMS or biometric (challenge) or other means.

More than 100 data points are now used to instantly verify a cardholder’s authenticity and assess the risk level of an online payment transaction without slowing down the transaction.

Transaction flow with EMV 3D SECURE 2

  1. Cardholder pays for an order
  2. Transaction details are sent to 3DS server
  3. Authentication is requested from the issuing bank
  4. Transaction risk is determined (ex. Low risk, high risk)
  5. Authentication sent to Processor, then merchant
  6. If successful, cardholder confirms the order and sale is complete

Significantly reducing chargebacks

3DS2 verification contains so much data it makes claiming fraud much harder!

Frictionless cardholder authentication process

Smoother process : 95% of the time the cardholder won’t be aware 3DS2 is being used.

Credential on File (COF) stores the cardholder’s card data for subsequent purchases.

All card data stored is first authenticated and authorized, giving merchants additional support in reducing chargebacks and fraud.

Benefits for merchants

  • Fight eCommerce fraud with EMV 3D Secure
  • Improved approval and authentication rates
  • Smoother user experience, which could result in fewer cart abandonments

For more details on 3Ds2, watch this short video: