3D Secure - the Authentication Layer of Payments by Checkout.com
𝟑𝐃 𝐒𝐞𝐜𝐮𝐫𝐞 — The Authentication Layer in Card-Not-Present Transactions
3D Secure (3DS) is a security protocol developed by EMVCo to authenticate online cardholders in real time. It facilitates risk-based authentication between the issuer, merchant, cardholder, and Access Control Server (ACS)—creating an added layer of trust in card-not-present (CNP) transactions.
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝟑𝐃 𝐒𝐞𝐜𝐮𝐫𝐞 𝐰𝐨𝐫𝐤?
3DS dynamically adapts to the transaction risk profile using one of two core flows:
1️⃣ 𝐅𝐫𝐢𝐜𝐭𝐢𝐨𝐧𝐥𝐞𝐬𝐬 𝐅𝐥𝐨𝐰
2️⃣ 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞 𝐅𝐥𝐨𝐰
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐒𝐡𝐢𝐟𝐭?
When 3DS is applied (and the issuer approves the authentication), liability for fraud-related chargebacks shifts from the merchant to the issuer.
This is especially critical for:
𝐒𝐭𝐚𝐧𝐝𝐚𝐥𝐨𝐧𝐞 𝟑𝐃𝐒 𝐯𝐬. 𝐏𝐒𝐏-𝐞𝐧𝐚𝐛𝐥𝐞𝐝 𝟑𝐃𝐒
📌 PSP-enabled 3DS - the PSP( Checkout.com , ACI Worldwide , DEUNA ) manages the 3DS flow
𝐖𝐡𝐲 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬 𝐬𝐡𝐨𝐮𝐥𝐝 𝐜𝐚𝐫𝐞
Source: Checkout.com
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eCommerce Product Manager at PayXpert
2wThank you for another clear presentation on a complicated payment feature ! Just one precision, the ACS is only the issuer part of the technical implementation (there is one for each bank or group), the merchants should use a "3DS Server" provider or solution to implement 3DS.