3D Secure & Masterpass
This is an authenticated system to help improve online transaction security and to encourage the growth of e-commerce payments. 3D secure & Masterpass allows shoppers to create and set passwords for their credit and debit cards which will then be requested for authentication.
Transactions carried out through payment gateway's with this enabled, redirects the payment process to authenticate the transaction and make payment. 3D secure or Masterpass asks shoppers to enter their password to help confirm the identity of the cardholder. First-time shoppers will need to go through a registration process at the time of the transaction.
How does 3D & Masterpass Secure work?
There are 3 parties involved in the process:
• The company the purchase is being made from
• The acquiring bank to which the money is paid
• The interoperability domain - card issuer and network being used (Mastercard, Visa, AMEX)
Using 3D secure & Masterpass on a payment gateway with SSL/ TLS Technology, secure payments can be made by protecting all parties involved in the transaction. 3D secure and Masterpass measures have been put in place to ultimately reduce card fraud giving online the chip and pin equivalent.
3D secure and Masterpass is the most recent fraud prevention initiative that is currently available. It’s also the only fraud prevention scheme that offers companies liability cover for transactions that are covered by the ‘Verified by Visa’ and ‘Mastercard SecureCode’ schemes. This provides additional protection for your business.
What cards are accepted?
3D secure and Masterpass is controlled by Mastercard and Visa so all cards can be used: Visa, Visa Delta, Visa Electron, Mastercard credit, Mastercard Debit, UK Maestro, International Maestro etc.
What are the benefits of 3D Secure & Masterpass?
• An added layer of proven fraud protection for the merchant and customers – 3D secure and Masterpass has been known to reduce online fraud, especially when this is combined with additional fraud prevention, for example, Address Verification Services, Cardholder Verification Value etc.
• Shifts fraud liability from your business with chargeback protection on qualifying transactions – offers a shield against a number of chargebacks as the liability is assumed by the card issuers. This is a major benefit for merchants and can result in a reduction of chargebacks and disagreements. Even if the cardholder or the issuer isn’t taking part, you can benefit from fraud protection.
• Increases customer confidence when shopping online – cardholders realise how secure and easy payments can be. They also recognize the logo's.
• Protects the cardholder against unauthorised use.
• Previously debit cards haven’t been allowed for financial transactions as banks were apprehensive about security. Banks’ have more confidence and have opened up to debit cards being used for online transactions.
• No extra cost. Your acquirer may charge to add this security feature to the merchant number, however, you may find that the transaction charges are lower as a result.
It’s worth noting that not all cards are part of the scheme. Currently, there are no similar initiatives for JCB or Diner’s club cards.
3D secure & Masterpass can be used alongside other fraud prevention tools.