That said, the broader rollout of 3DS 2.0 is coming - and soon. What is the timeline for implementing 3DS 2.0?ģDS 2.0 is the early stages of adoption by issuing banks, which means that 3DS authentication attempts aren't benefiting yet from the new 3DS 2.0 protocol. Under 3DS 2.0, merchants may also shift the liability for fraudulent transactions from themselves to the issuing bank. 3DS 2.0 is designed to better authenticate legitimate transactions and to better deny fraudulent transactions. In fact, Visa reports that merchants using 3DS 2.0 experience a 70% decrease in cart abandonment, and an 85% reduction in transaction time.īut perhaps the most important change is that 3DS 2.0 gives merchants another tool in their fight against fraud. A payments integration that supports 3DS 2.0 is an industry standard approach to comply with the new EU laws.Īlso appealing: This next iteration of the 3DS is specifically designed to reduce friction in the transaction process, and thus help improve conversion. The good news: Enabling 3DS 2.0 helps cover those SCA requirements. How do the changes help out merchants?Īs noted, companies doing business in Europe need to comply with PSD2 Strong Customer Authentication requirements. The premise for these changes: If the issuing banks have sufficient data about the customer attempting the transaction, it will reduce the need for authentication challenges. Some of these data points, such as the email address, billing address, etc, will be supplied by customers, while others come from the customer’s device and browser data.
In addition to supporting seamless authentication experiences for customers, the new version also helps reduce the occurrence of authentication challenges - which can range from an app-switch to a one-time password sent via SMS - by requiring issuing banks to accept and utilize a larger number of data points in a risk-assessment to determine if a challenge is warranted.
It’s no wonder - the original 3D Secure protocol was developed well before the advent of the smartphone!ģDS 2.0’s specifications as outlined by EMVCo, the company chartered with creating the 3DS 2.0 protocol, provide inherent support for mobile clients including native iOS and Android SDKs. The latest iteration - 3DS 2.0 - improves on the system greatly, especially in terms of mobile payments processing. how is 3DS 2.0 different from 3D Secure 1.0?ģD Secure 1.0 (3DS 1.0) connects merchants, payment networks, and financial institutions in order to authenticate transactions and share data. Here are a few of the more frequently asked ones to help you prepare. It's truly an exciting and welcome improvement, but we understand that merchants may have some questions about 3DS 2.0. It also is expected to greatly reduce friction in the mobile-purchase process and can help increase conversions for any merchants who integrate the new version - a task Braintree is making easy via updated SDKs, available soon. The improved authentication system helps merchants transacting in Europe meet Strong Customer Authentication requirements under the second Payment Services Directive (PSD2). Moving to 3DS 2.0 can offer merchants benefits beyond increased fraud prevention. With issuing banks preparing to support 3DS 2.0 integrations by spring 2019, many merchants may be wondering how this next iteration will impact them - and how they can prepare. Verifying card owners can transfer liability for fraud disputes away from the merchants who utilize 3DS.
3D Secure 2.0 (3DS 2.0) is the latest update of the 3D Secure authentication protocol, which allows issuing banks to verify credit card owners during the transaction process.