Published by: Sujan
Published date: 16 Jun 2021
Payer Authentication (also known as 3-D Secure) is a solution created by the credit card associations to provide additional fraud protection by asking cardholders to authenticate themselves to their issuing bank at the time of purchase. A cardholder’s identity is confirmed using one of a variety of authentication methods, and merchants are provided with instant authentication results thereby greatly reducing the risk of unauthorized use.
Consumers enroll their Visa or MasterCard credit cards in the Verified by Visa or MasterCard SecureCode programs at their issuing bank's web site. During the enrollment, they choose a password to associate with their card. When they use that card at a merchant enabled for Verified by Visa and MasterCard SecureCode, they are prompted by their issuing bank to 'sign" for the purchase with their password.
Using 3-D Secure is advisable but the merchant also has to decide whether adding this extra step will be in the best interest for their business. In general, each merchant should have an idea of the volume of sales that they will lose and will then calculate how much can be gained on chargebacks and fraud by offering 3-D Secure. 3-D Secure definitely makes your payments safer and more trustworthy but for some of the clients it might be an inconvenience.