Everything about 3D Secure v2 (3DS v2)
How does 3DS work?
To clearly understand 3D secure 2.0, one must have a clear understanding of its origin. You have probably already experienced 3dsecure when making an online payment with your card. To finalise the payment, you would have been requested to authenticate the payment, either by confirming the transaction on your bank app or by entering a One Time Pin sent by your bank.
3D secure is a secure system or protocol that has been developed to prevent online fraudulent transactions via online credit and debit cards by requesting additional information from the customer, thereby ensuring that the purchase is done by the owner of the card.
This year, the banks in South Africa have deployed a new version of 3D secure, “3D secure 2” also known as 3DS2. It has been designed to solve the different issues identified on the 3DS1 such as the disruptive authentication and to deliver a more users friendly experience to the end customer.
Advantages of having 3DS2
Users experience:
Having to keep fraudulent transactions at a low-level rate and dealing with the user experience wasn’t easy for the previous version (3D secure 1.0). 3D secure 2.0 is more customers friendly, than the 3D secure 1.0. By being more intuitive, with a more clear interaction with the customer, and also by reducing friction in the transaction process.
High Secure Payment:
3DS 2.0 comes along with a more secure system. Besides the password and OTP used, 3DS 2.0 brings tokens and a biometric security system that replaces univariable passwords.
Stronger authentication:
As stated above, with the 3DS 1.0 the authentication system requested users to remember a static password, which eventually comes with its advantages, as when consumers set a simple one, they are easy to get hack or find but and when they set a difficult password, it’s easy for them to forget about it.
For more security, the 3DS 2.0 comes with biometric authentications, which include so far face recognition, voice recognition, and fingerprint
Device support:
One of the biggest technological innovations in the new version is the availability of the system. The 3D secure 1.0, only allows card-based -payments or transactions but the 3D secure 2.0 enables not only card-based payments but also digital wallet payment and mobile payment methods.
Safe communication channel:
Difficulties can occur during the communication process in the system between the issuer and the merchant. In the 3D Secure 1.0, the communication is conducted via the cardholder but in the 3D secure 2.0 the communication is controlled/direct by the Directory server ( which verifies if the card is registered in the system).