At Paynode, security is front and center. This is why we apply 3D Secure to each card payment.
What is 3D Secure?
3D secure is a security protocol that helps prevent fraud in online credit and debit card transactions. The purpose of 3DS is to authenticate that person using the credit card is in fact who they say they are.
Every time a transaction is authenticated with 3DS, you will have the assurance that the person using the card is actually the card holder. 3DS also protects customers while paying online, as it prevents other people trying to process a transaction without being authenticated.
How does 3D Secure work?
It is up to the card issuer to determine how the card holder will experience 3D Secure.
In some instances, the card issuer will opt to deliver a "frictionless" 3D Secure experience for the card holder. This means that the card issuer's logo and messaging may be displayed while the transaction is authenticated, but the card holder is not prompted to enter any credentials. This most often happens for repeat purchases.
In other instances, the card issuer will require the card holder to input their credentials. The cardholder is redirected to a "3D Secure" page (served by the issuing bank) and asked to authenticates themselves to the issuing bank by confirming their identity.
When 3D Secure is successful, the transaction is approved and the liability from fraudulent charge-backs (stolen or counterfeit cards) shifts to the issuing bank.
While Paynode applies 3DS to all transactions, not all cards are enrolled in 3DS.