DOES your business take online payments? Changes are underway to upgrade the additional layer of card payment security known as 3D Secure, to 3D Secure 2.
What is 3D Secure?
3D Secure is the additional layer of security that pops up when making an online payment.
Once you have confirmed a transaction a small window opens that connects to your bank, allowing you to enter characters from a pre-defined password.
The current system is known as 3D Secure 1, but this is in the process of being changed to 3D Secure 2 to provide users with enhanced security, and a better user experience, all thanks to smart phones.
3D Secure 2 has been developed with the smart phone in mind.
This is because of the huge rise in mobile commerce (making online purchases with our phones).
It also means that in-built biometric security such as fingerprint scanning can be used to authorise a transaction – this makes transactions faster and more reliable because users don’t have to remember or reset passwords.
The general opinion is that 3D Secure 2 will be a huge help to businesses in the e-commerce arena, because they will experience less cart abandonment (users putting goods in their shopping baskets but not completing the transaction) by up to 70 per cent, which is huge.
It will also significantly reduce fraud and chargebacks because the security is authenticated through the user’s mobile phone, rather than a password.
Overall, 3D Secure 2 is a very positive move for both users and merchants, and the projected reduction in fraud and improvements in user experience will be significant.
Implementing 3D Secure 2
The banks have already implemented 3D Secure 2 into their processes, with most having this in place for spring 2019.
The general guidelines for businesses is that 3D Secure 2 should be in place by the end of September 2019, although the general feeling is that 3DS1 and 3DS2 will run simultaneously into 2020 before 3DS1 is disbanded.
For most businesses who are using external or integrated payment gateways, the gateway will be doing the hard work for you and you should notice no difference, but please look out for updates from your merchant account provider.
For some of the newer gateways such as Stripe and GoCardless, there may be some development work to do to change to 3D Secure 2, and this is something that you should discuss with your website developer.
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