3D secure is a secure online payment protocol, that includes all component necessary for the implementation of secure e-commerce payment transaction for acquirer as well as the issuer.
The volume of Internet transactions is continuously increasing due to the multiplication of merchant sites that accept this payment means. This growth is visible through the volumes communicated by VISA & MasterCard.
Internet transaction naturally generates a very large number of fraudulent transactions in an environment where the physical card is not always present. Statistics show that the number of Chargebacks originating from cardless transactions is much greater than those originating from physical card transactions.
This standard is commonly known as 3 Domain Secure (3-D Secure). It ensures a security level in all areas through which an e-commerce transaction passes. The main gain behind this standard as opposed to the classic operation is to provide the issuer with the ability to directly authenticate its holders without having to go through the acquirer. This ensures that sensitive cardholder data is not manipulated by the merchant sites, including fraudulent sites.
The 3-D Secure standard is implemented by VISA under the name “VerifedByVisa” and by MasterCard under “SecureCode”.