The system developed to increase transaction security for payments made with credit cards and debit cards in e-commerce transactions is called 3D Secure.
When paying with 3D Secure, a special 3D Secure payment screen provided by the bank opens on the user's screen. At the same time, a confirmation code is sent to the mobile phone number registered with the bank for the cardholder who wants to make the payment. If the code sent to the mobile phone is not entered in the required field on the 3D Secure transaction screen and confirmed, the payment does not go through. When the process continues with the code sent to the mobile phone entered, the code sent to the phone is checked against the entered code, and if it is verified, the authorization process is initiated.
So why is 3D Secure preferred?
Payments made with 3D Secure can only be completed with the confirmation code sent to the cardholder's mobile phone. For this reason, it is not possible for the transaction to be carried out by anyone other than the cardholder.
At the same time, the 3D Secure system also prevents payments attempted with stolen cards. Even if the credit card number, expiry date, and the CVV2 code on the back of the card fall into someone else's hands, the transaction cannot be completed successfully, because the fraudster cannot know the code sent to the mobile phone.
What are the benefits of the 3D Secure payment system for companies?
One of the main problems faced by companies accepting credit card payments online is the use of stolen cards in their systems, or the bank canceling the transaction when a dispute is raised even though the payment was made by the credit card holder. Furthermore, as the number of disputed or stolen-card payments increases, banks may cancel the virtual POS they have authorized for use, or suspend the company's virtual POS account and freeze the funds held in the account.
Thanks to 3D Secure, companies can determine that the user making the payment is the real cardholder. This prevents card transactions from being misused. 3D Secure is very important in that it protects both cardholders and companies against fraud.
What are the benefits of the 3D Secure system for online stores?
The 3D Secure system allows stores to be sure that the person carrying out the transaction is the real owner of the card. This significantly reduces the misuse of e-commerce transactions and the likelihood of chargebacks. Because the cardholder confirms the transaction using their password during the process, it prevents disputes such as "I didn't do this" or "this was done without my approval." In this way, with the 3D Secure system, online stores avoid the chargeback costs for transactions carried out within the system.
You can find details on how the 3D Secure level of a transaction is determined in the article below.
