24 October 2022
What is 3DS 2.0 and how is it different to 3DS 1.0?
What is 3D Secure (3DS)?
3D Secure is the global industry protocol that provides the mechanism for cardholder authentication at the time of an eCommerce purchase. Simply put, 3D Secure offers an additional layer of security to reduce fraud in online transactions. And, as a result of that increased security, sales rates improve as the number of disputed transactions decrease. Win-win.
How is 3DS 2.0 any different to 3DS 1.0?
3DS 2.0 is an evolution of the 3DS protocol with benefits that stretch beyond increased fraud prevention. By addressing the pain points of the previous version, 3DS 2.0 will aid in tackling cart abandonment through providing a smoother and integrated user experience.
Key benefits of 3DS 2.0 include:
Frictionless flow – cardholders can authenticate themselves without the need for further details, such as a one-time passcode. Visa estimates merchants will benefit with up to 66% less cart abandonment rates.
Better user experience for your customers – 3D Secure 2.0 was built with the smartphone in mind, allowing mobile customers to authenticate with just their fingerprint, or even facial recognition.
Shift in liability – should a 3DS 2.0 payment later be disputed as fraudulent by the cardholder, the liability shifts from you, the merchant, to the card issuer.
How does 3DS 2.0 benefit me as a merchant?
As a merchant, 3DS 2.0 should offer significant benefits. Not only in increased fraud prevention, but thanks to reducing checkout times by up to 85% and card abandonment rate by 70%, merchants should see more sales conversions thanks to lower cart abandonment rates. Other benefits of 3DS 2.0 include the liability shift from you as a merchant, a reduction in transaction costs and reductions in the number of false-positives by fraud prevention software.
How does 3DS 2.0 benefit the end consumer?
Increased speed and convenience. Consumers will experience less steps at checkout as they wave goodbye to the days of waiting for that one-time-password for each and every transaction. That’s all thanks to 3DS 2.0’s tenfold increase of risk assessment data points compared to the previous version. This means that Amy’s repeated fashion purchases at her favourite online store will be labelled as low-risk by her merchant and issuing bank – resulting in a simpler, speedier and more secure checkout experience.
It’s clear that 3DS 2.0 represents a smart evolution of the 3DS protocol, with the smartphone user in mind. Customers’ checkout experiences should be boosted as they experience fewer steps and less faff, and merchants will reap the rewards with reduction in cart abandonment and happier customers.
How does Till support 3DS 2.0?
Till are continually committed to meeting the needs of their merchants and partners, and their end customers. That is why Till’s complete range of online payment products support the latest version of 3D Secure, as standard. It’s a win for everyone.