Strong customer authentication (SCA) was established by the EU Revised Directive on Payment Services (PSD2) in 2019 to help support the security of digital transactions. It is a preferred method for ensuring the authenticity of card-not-present payments. Meeting these SCA requirements requires multi-factor authentication (MFA) for card-not-present scenarios. 3-D Secure (3DS) technology satisfies this requirement and provides enhanced security that protects the cardholder.

3-D Secure: Comply with PSD2, Prevent Fraud, Reduce Liability

Q: What is 3-D Secure 2.0?

3-D Secure 2.0 (3DS2) technology was created in response to the growing number of card-not-present transactions that occur primarily online. 3DS2 surpasses the original 3DS technology by collecting and cross-referencing 10x more data points during authentication than before—which filters out fraud and verifies the cardholder’s active participation in the sale. As a result, merchants will experience a reduction in both fraudulent transactions and friendly fraud chargebacks, where customers dispute legitimate purchases to obtain a refund. IXOPAY offers both versions of 3DS.

Key Benefits

Reduce Fraud

Using risk-based authentication, 3DS analyzes transaction data in real time to identify and block suspicious activity before payment approval.

Streamlined Compliance

Meet global security standards like PSD2 Strong Customer Authentication while reducing fraud risk.

Shift Liability

Cardholders register their data with their issuing bank, so the issuer assumes fraud risk and liability, not merchants.

Remove Friction

Remove friction from the checkout process without the need for additional cardholder inputs.

How it Works

3D-Secure (3DS) authenticates cardholder identities in real-time using 150+ data points, reducing fraud and chargebacks. Low-risk transactions can be approved seamlessly, while high-risk transactions trigger additional authentication, such as biometrics or one-time passcodes.

What You Get

Real-Time Authentication

Analyze transaction data instantly, determining risk by assessing factors like device information, location, and spending patterns. With faster checkouts and improved customer experiences, businesses experience fewer abandoned shopping carts and more sales.

Cross-Device Compatibility

Designed for seamless transaction experiences across browsers and mobile devices, including in-app and digital wallet transactions with authentication via one-time passcodes, push notifications, or biometrics.