Digital commerce is the fastest growing area of payments, as more connected devices become payment devices. Consumers have more ways to pay than ever before, whether through a browser, mobile app, or connected device. Today’s six billion connected devices will exceed 20 billion in the next three years.i But, when a consumer making a digital purchase not in a traditional store, verifying the transaction and the identity of the consumer becomes increasingly important and challenging. Industry research estimates that half of digital commerce transactions declined due to suspected fraud are actually legitimate.ii
For this reason, it’s more critical than ever that the industry continue to invest in new approaches to preventing fraud,
while maintaining the speed and convenience customers love about online shopping. Helping issuers and merchants distinguish good transactions from bad will mitigate fraud, while allowing transactions to continue to happen at lightning speed. 3-D Secure 2.0 is an important advancement in this effort that will help prevent fraud and accelerate digital commerce with fast, secure authentication.
How does 3-D Secure 2.0 work? Better, stronger fraud-detection intelligence, to put it simply.
3-D Secure has been around for years and creates an authentication data connection between digital merchants, payment networks, and financial institutions to be able to analyze and share more intelligence about transactions. The new 2.0 version of the technology enables a real-time, secure, information-sharing pipeline that merchants can use to send an unprecedented number of transaction attributes that the issuer can use to authenticate customers more accurately without asking for a static password or slowing down commerce.
To better illustrate this process, this infographic describes how 3-D Secure 2.0 works.
To ensure issuers and merchants have time to test, pilot, refine and fully roll out solutions, current Visa rules for merchant-attempted 3-D Secure transactions will extend to 3-D Secure 2.0 beginning April 2019. Merchants and issuers are already working on their implementations and Visa expects early adoption to begin in the latter half of 2017. Visa will continue to work with clients and partners globally to support 3-D Secure 2.0 solutions, with a focus on continuing to improve payments security and increasing authorizations, to ensure seamless digital payment experiences.