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Online payments: 3DS 2.0, the new 3D Secure code for your e-commerce

We already had a word about PSD2 (Payment Services Directive 2): the newest European legislation on digital payments, valid by September 14th.

SCA and 3DS 2.0: mandatory safety measures for online payments

The PSD2 legislation carries some required changes to online payment systems for e-commerce owners. SCA and 3DS 2.0 are going to be compulsory features for any online payment system in Europe by September the 14th.

Update your E-commerce and be compliant.

Read our article to know anything you need to update your e-commerce.

SCA (Strong Customer Authentication) is an authentication method based on the combined used of two different individual authentication methods: through something you know (like PIN or Passwords) or something you have (like a Smartphone, a credit card or a token), or something you are (digital fingerprint, voiceprint, or facial recognition). SCA, established in the new PSD2 European legislation, is going to be supported by an implementation of 3DS 2.0, the latest version of the 3D Secure system.

What’s 3DS 20?

It is a new 3DS Secure version that:

  • simplifies authentication

  • simplifies online payments

  • Grants compliance with mandatory SCA standards, thanks to a smarter use of data.

Difference between 3DS and 3DS 2.0

1. Pop-up opening

Current 3DS
Provides a pop-up screen with a different URL to which the user is redirected to answer further security questions. Fraudulent pop-ups can have similar appearances, and this lowers the conversion rate: lots of users abandon the transaction, thinking is not safe to proceed.

3DS 2.0
Transaction authentication is performed inside the e-commerce app or payment module, avoiding unclear redirects. In this way, the transaction is part of an easy and fast authentication stream, free of problems.

2. Risk Factor

Current 3DS
The risk factor is high: it's not required to deploy the 3DS system as a security feature, increasing chances for the user to suffer online frauds.

3DS 2.0
It’s mandatory for all web sites by September 14th, 2019.

3. Virtual Wallets

Current 3DS
Users can pay using credit cards only: 3DS 1.0 doesn’t allow to pay using virtual wallets.

3DS 2.0
It’s possible to pay with virtual wallets and not only credit cards. 3DS 2.0 This is an innovative system that enables transactions through the most modern payment systems, like e-wallets and mobile wallets.

4. Password and Authentication

Current 3DS
another limit of the current 3DS system is on unique and robust passwords and their storage: users with multiple credit cards can find it challenging to remember countless passwords.

3DS 2.0
3DS 2.0 is going to allow payments through biometric recognition methods, lowering the chances of fraud.

Less transaction withdrawals

Customers' transaction withdrawals will decrease significantly, given that payment procedures will be extremely simplified.

Fast and easy payments for a safer E-commerce

Furthermore, 3DS 2.0 transmits essential data to the owner's bank, like shipping address, device and client ID, and previous transaction history. The Bank can evaluate risk level and, if a transaction is considered safe, payment is made in a fast and easy way (the final user doesn’t even notice the use of 3DS 2.0). Otherwise, the bank may require additional information for payment authentication.

3DS 2.0 will improve user experience, lowering shopping e-cart dropout and make authentication procedures more dynamic and secure, giving customers more flexible payment options.
This is a giant leap ahead toward online fraud prevention and e-commerce safety.

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