Lord777
Professional
- Messages
- 2,577
- Reaction score
- 1,553
- Points
- 113
Visa launches 3-D Secure 2.0 security protocol. The global transition to the new system should begin in the second half of 2021. Evelina Nechiporenko, Director of the Risk Management Department of Visa, talks about the new version of the protocol for ensuring the security and user authentication when making payment transactions on the Internet - 3-D Secure 2.0.
3-D Secure 2.0 - More Security and Approved Transactions in Online Payments.
With more connected devices being used as payment instruments, e-commerce has become the fastest growing segment of cashless payments today. the new solution provides an even higher level of protection and speed when making transactions with bank cards online.
Never before has the consumer been offered such a variety of payment methods - whether it be through a browser, a mobile application or an Internet-connected device. Today, there are six billion such devices in the world, but in three years their number will exceed 20 billion. However, when buying not in a regular store, but via the Internet, user authentication and confirmation of the transaction become the most important and at the same time difficult stage of making a payment. Industry research estimates that half of the transactions rejected by issuing banks on suspicion of fraud are actually not.
This is why it is more important than ever to continue investing in new anti-fraud tools that will keep the speed and convenience of paying for purchases fast and easy - something that customers value online commerce so much for. If it becomes easier for issuing banks and online retailers to recognize fraudulent transactions, their number will decrease, and opportunities will open up to significantly increase the speed of payments. 3-D Secure 2.0 is an important step forward in this direction, a solution that helps prevent fraudulent activities and grows trading through a fast and secure cardholder authentication system.
How 3-D Secure 2.0 works
3-D Secure has been around for years. This technology creates a communication channel of data used for authentication between the online store, the payment system and the bank in order to analyze a large amount of information about transactions. The buyer encounters it, receiving one-time passwords when paying for purchases in online stores. The password that is sent to the mobile phone must be entered on the website of the issuing bank that issued the card. This procedure is necessary in order to make sure that the card is in the hands of its real owner.
If we talk about the new version 2.0, then this is a more powerful and efficient intelligent fraud detection system. The updated protocol enables a secure, real-time communication channel through which merchants can transfer much more transaction data for more accurate customer and transaction authentication without prompting for a password that slows down the purchase process. The speed of making a payment increases, since not all transactions will be authenticated with a password, but only some of them. Now, most transactions will be performed without the need to confirm the identity of the cardholder in the same way, which will reduce the number of refusals to pay. This became possible thanks to the use of additional parameters, which are provided to online stores. Based on the data received, the bank that issued the card will make a decision to confirm the transaction, taking into account the settings of the device on which the payment is made, the browser, the IP address, and much more, which allows you to quickly and accurately confirm the user's identity. For comparison, the previous version of the protocol only worked in the browser.
Today, the integration of the 3D Secure 2.0 protocol is at its initial stage. The high rates of growth in the popularity of online payments and, as a consequence, the increase in online fraud indicate that the security technology update is timely. To ensure that issuing banks and merchants have enough time to test, pilot, refine and fully implement the new solution, Visa's current rules for merchant-initiated 3-D Secure transactions will be adapted for 3-D Secure 2.0 by April 2019. Merchants and issuing banks are already working on the launch of the new technology, and Visa expects the first phase of its transition globally to begin in the second half of 2017. To guarantee consumers the simplicity and convenience of paying for purchases on the Internet,
Based on materials from VISA.
3-D Secure 2.0 - More Security and Approved Transactions in Online Payments.
With more connected devices being used as payment instruments, e-commerce has become the fastest growing segment of cashless payments today. the new solution provides an even higher level of protection and speed when making transactions with bank cards online.
Never before has the consumer been offered such a variety of payment methods - whether it be through a browser, a mobile application or an Internet-connected device. Today, there are six billion such devices in the world, but in three years their number will exceed 20 billion. However, when buying not in a regular store, but via the Internet, user authentication and confirmation of the transaction become the most important and at the same time difficult stage of making a payment. Industry research estimates that half of the transactions rejected by issuing banks on suspicion of fraud are actually not.
This is why it is more important than ever to continue investing in new anti-fraud tools that will keep the speed and convenience of paying for purchases fast and easy - something that customers value online commerce so much for. If it becomes easier for issuing banks and online retailers to recognize fraudulent transactions, their number will decrease, and opportunities will open up to significantly increase the speed of payments. 3-D Secure 2.0 is an important step forward in this direction, a solution that helps prevent fraudulent activities and grows trading through a fast and secure cardholder authentication system.
How 3-D Secure 2.0 works
3-D Secure has been around for years. This technology creates a communication channel of data used for authentication between the online store, the payment system and the bank in order to analyze a large amount of information about transactions. The buyer encounters it, receiving one-time passwords when paying for purchases in online stores. The password that is sent to the mobile phone must be entered on the website of the issuing bank that issued the card. This procedure is necessary in order to make sure that the card is in the hands of its real owner.
If we talk about the new version 2.0, then this is a more powerful and efficient intelligent fraud detection system. The updated protocol enables a secure, real-time communication channel through which merchants can transfer much more transaction data for more accurate customer and transaction authentication without prompting for a password that slows down the purchase process. The speed of making a payment increases, since not all transactions will be authenticated with a password, but only some of them. Now, most transactions will be performed without the need to confirm the identity of the cardholder in the same way, which will reduce the number of refusals to pay. This became possible thanks to the use of additional parameters, which are provided to online stores. Based on the data received, the bank that issued the card will make a decision to confirm the transaction, taking into account the settings of the device on which the payment is made, the browser, the IP address, and much more, which allows you to quickly and accurately confirm the user's identity. For comparison, the previous version of the protocol only worked in the browser.
Today, the integration of the 3D Secure 2.0 protocol is at its initial stage. The high rates of growth in the popularity of online payments and, as a consequence, the increase in online fraud indicate that the security technology update is timely. To ensure that issuing banks and merchants have enough time to test, pilot, refine and fully implement the new solution, Visa's current rules for merchant-initiated 3-D Secure transactions will be adapted for 3-D Secure 2.0 by April 2019. Merchants and issuing banks are already working on the launch of the new technology, and Visa expects the first phase of its transition globally to begin in the second half of 2017. To guarantee consumers the simplicity and convenience of paying for purchases on the Internet,
Based on materials from VISA.
