How to create your own 2DS payment system?

[chushpan]

Creating a 2DS (Two-Domain Secure) payment system is the process of developing a platform that allows you to accept payments using only basic card data (card number, expiration date, and CVV) without additional authentication such as 3D Secure. Such a system can be useful for small businesses or startups, but it is important to remember that working with payment data requires strict compliance with legislation and security standards such as PCI DSS.

1. What is 2DS?​

2DS (Two-Domain Secure) is a simplified payment processing model in which:

• Only basic card data is required.
• There is no need for additional authentication via 3D Secure (eg OTP or password).
• Payments are faster but less secure than 3DS.

Examples of use:

• Small online stores.
• Startups that want to minimize friction in payments.
• Payment gateways for local markets.

2. Stages of creating a 2DS payment system​

a. Planning and model selection​

• Define the goals of your system:
  • What types of payments do you want to support?
  • What regions and currencies will be covered?
• Decide whether the system will be integrated with banks directly or through payment aggregators.

b. Obtaining legal permissions​

• Register your business and obtain the necessary licenses.
• Make sure your activities comply with the laws of the country where you operate (e.g. GDPR in Europe, PCI DSS for card data processing).

c. Integration with payment gateways​

• Select a payment gateway that supports 2DS:
  • Examples: Stripe, PayPal, Square, Adyen.
  • Make sure the gateway allows you to accept payments without 3D Secure.
• Set up API to integrate with your system.

d. Website or mobile app development​

• Create an interface for entering card data:
  • The form must be secure (HTTPS, data encryption).
  • Minimize the number of required fields (card number, expiration date, CVV).
• Use ready-made libraries to work with payments:
  • For example, Stripe.js, PayPal SDK.

e. Setting up transaction processing​

• Process payments through your chosen gateway:
  • Transmit card data in encrypted form.
  • Receive a response from the gateway (successful transaction or failure).
• Implement a notification system for clients (e.g. email or SMS).

f. System testing​

• Conduct test transactions using test cards (provided by payment gateways).
• Check the system's operation on different devices and browsers.

g. Launch and Monitoring​

• Start the system in working mode.
• Set up transaction monitoring to detect fraudulent activity.
• Update your system regularly to protect against vulnerabilities.

3. Technical requirements​

a. Security​

• Use HTTPS to encrypt data between the client and the server.
• Comply with PCI DSS if you handle card data directly.
• Store card data only in encrypted form (or do not store it at all).

b. Integration with payment gateway​

• Connect to the API of the selected gateway:
  • Example for Stripe:
    

    const stripe = require('stripe')('your-secret-key');
    const paymentIntent = await stripe.paymentIntents.create({
    amount: 1000, // Amount in cents
    currency: 'usd',
    payment_method_types: ['card'],
    });

  • Example for PayPal:
    

    const paypal = require('@paypal/checkout-server-sdk');
    const request = new paypal.orders.OrdersCreateRequest();
    request.prefer('return=representation');
    request.requestBody({
    intent: 'CAPTURE',
    purchase_units: [{
    amount: {
    currency_code: 'USD',
    value: '10.00',
     },
    }],
    });

c. Database​

• Store only the data you need:
  • Transaction ID.
  • Payment status.
  • Client email (for notifications).

4. Advantages and disadvantages of 2DS​

Advantages​

• Simplicity: Minimal number of steps for the user.
• Speed: Payments are faster as there is no additional authentication.
• Affordability: Suitable for small businesses and local markets.

Disadvantages​

• Security risks: More chances for fraudsters to use stolen card details.
• Liability: Businesses are liable for fraudulent transactions.
• Limitations: Some banks may block transactions without 3D Secure.

5. How to avoid problems with the law?​

• Comply with PCI DSS: If you handle card data, make sure your system meets security standards.
• Use trusted payment gateways: Don't try to process payments directly unless you have experience.
• Transaction Monitoring: Implement a system to identify suspicious activity.
• Consult with a lawyer: Make sure your activities comply with local laws.

6. Alternatives to 2DS​

If you want to increase security, consider using 3D Secure (3DS) :

• Adds an additional layer of authentication (eg OTP).
• Reduces the risk of fraud.
• Shifts responsibility for fraudulent transactions to the bank.

7. Conclusion​

Creating a 2DS payment system requires careful attention to security and legislation. Although such a system simplifies the payment process, it also increases the risk of fraud. If you plan to work with payments, it is recommended to use proven payment gateways and comply with all necessary standards.

If you have additional questions about creating a payment system or working with payment data, ask them!

 

[Man]

How to create your own payment system with 2DS (analogue of 3D Secure)?​

Creating your own secure online payment system with two-step verification (2DS) requires technical knowledge and compliance with security standards (PCI DSS). Here is a legal and step-by-step approach:

1. Main components of the system​

Before development, identify key elements:

• Payment gateway (transaction processing).
• 2DS (additional user verification) mechanism.
• Integration with banks/acquirers.

2. Development stages​

2.1. Selection of technologies​

• Backend:
  • Languages: Python (Django/Flask), Java (Spring), Node.js.
  • DB: PostgreSQL, MySQL (for storing logs, not maps!).
• Frontend:
  • Web interface: React, Vue.js.
  • Mobile SDKs (if needed).
• Protocols:
  • HTTPS (TLS 1.3) – required.
  • Tokenization – replacement of card data with tokens.

2.2. 2DS Implementation​

Analogue of 3D Secure, but with simplified verification. Algorithm example:

1. The user enters a card on your site.
2. The system asks for confirmation:
   • SMS code.
   • Push notification to mobile application.
   • Biometrics (Face ID, fingerprint).
3. The payment is approved if the code is correct.

2.3. Integration with acquiring​

• Partnership with the bank:
  • Connect acquiring.
  • Use their API to process payments.
• Own payment gateway:
  • Full control will require licenses.

2.4. Security (PCI DSS Compliance)​

• Do not store card data – use tokenization or third-party services (Stripe, CloudPayments).
• Audit and testing:
  • Pentest (vulnerability check).
  • PCI DSS certification (if you process payments yourself).

3. Ready-made solutions (for starters)​

If you don't want to develop from scratch:

1. Stripe / PayPal – support 3D Secure.
2. CloudPayments – ready-made API/
3. Open-Source project:
   • Adyen (3DS module).
   • Omise (payment system with 2FA).

4. Legal aspects​

• Licensing:
  • In some countries a license is required (for payment operators).
• KYC/AML:
  • Checking clients.

Conclusion​

1. A 2DS system can be created based on bank APIs or ready-made solutions (Stripe, CloudPayments).
2. Our own development requires PCI DSS and integration with acquiring.
3. To get started, it is easier to use existing payment systems.

If you need help choosing a technology or API, please provide details and I will give you specific recommendations!

⚠ Important: Unlicensed home-made systems may be illegal. Consult with lawyers.