It is a well-known fact that the level of card fraud is higher when card not-present transactions take place while the merchant needs to rely on the cardholder who provides credit card information indirectly, usually over the Internet. Consequently, fraudsters try to steal the required information (cardholder’s name, card number, expiration date, CVV, etc.) and use it for their own purposes.
As a result many businesses are looking for payment processing software which supports 3D Secure and other fraud protection tools and mechanisms which will allow them to protect their businesses from money losses caused by chargebacks. So, what is 3D Secure and how does it work?
3D Secure is an XML-based protocol which adds additional security layer for online credit and debit card transactions (3D Secure is implemented by Visa, MasterCard and Amex). Three things are required for 3D Secure to function. First, the issuing bank should be enrolled into 3D Secure program. Second, the cardholder should enroll the card into the program and associate a code/password with it. Third, a website (payment processing software used by the website) should support 3D Secure.
In essence 3D Secure provides an additional authentication step. When the customer has to pay for the purchase he/she is redirected to the additional authentication page where he/she is asked to enter the password associated with the card. In case when the password is wrong the transaction is not processed. That’s why from the merchants’ point of view it helps to reduce the number of chargebacks and from the customers’ point of view it protects them from the illegitimate use of the card if it is stolen.
If you run your business online and you deal with payments you need to use payment processing software which supports 3D Secure while it will help you to avoid a lot of problems and will help you to gain the trust of your customers. UniPay Payment Management Platform is a great example of the reliable payment processing solution which supports 3D Secure and uses a lot of other fraud protection tools to provide your business with the level of security required by your customers and you. (Visit our website to learn more).
Also some additional information on 3D Secure and other fraud protection tools used by payment processing companies is available in the articles at Paylosophy Payment Advice Portal.