But, while 3DS has been a game-changer for payment security, it’s not without its challenges. For businesses, the question is: How do we implement 3DS without frustrating customers or losing sales?

Let’s break it down.

What Is 3-D Secure?

3-D Secure is an authentication protocol that adds an extra layer of security to online card payments. Initially introduced by Visa (as Verified by Visa), other card networks like Mastercard (Mastercard Identity Check) and American Express have adopted similar systems.

Here’s how it works:

🖥️ During checkout, customers are redirected to their bank’s page (or an in-app screen) to complete an extra step, such as entering a one-time password (OTP), using biometrics, or confirming via their banking app.

✅ If the authentication is successful, the transaction proceeds. If not, it’s declined.

With the introduction of 3DS 2.0, the process has become more streamlined and mobile-friendly, but challenges remain.

Why 3-D Secure Matters?

The primary goal of 3DS is fraud prevention. By authenticating the cardholder’s identity, it significantly reduces the risk of unauthorized transactions.

For merchants, 3DS also offers a key benefit: liability shift. When 3DS is successfully used, the responsibility for fraud-related chargebacks shifts from the merchant to the card issuer.

💡 In short: 3DS protects both merchants and customers from fraud, but the process isn’t always smooth.

The Challenges of 3-D Secure

While 3DS boosts security, it introduces some complications during the payment process:

🚧 Increased Friction Adding an extra authentication step can slow down the checkout process, leading to higher cart abandonment rates. Customers expect fast and seamless payments, and any additional step can feel like a hassle.

🔧 Technical Issues Poor implementation of 3DS can result in failed authentications or errors, frustrating customers and causing them to abandon their purchases.

😕 Customer Confusion Not all customers understand why they’re being asked for extra verification. This confusion can erode trust and discourage them from completing the transaction.

🌍 Cross-Border Transactions 3DS adoption and implementation vary across countries. In some regions, the protocol is less common, leading to higher decline rates for international transactions.

🔒 PSD2 and SCA Requirements In Europe, PSD2’s Strong Customer Authentication (SCA) mandate has made 3DS mandatory for many online transactions. While this improves security, it also places pressure on merchants to ensure their payment flows comply with these regulations.

⚖️ The Balance: Merchants need to find a way to offer secure payments without sacrificing convenience or customer satisfaction.

How to Overcome 3-D Secure Challenges

The good news is that advancements in technology and best practices are helping businesses overcome these challenges:

🟢 Leverage 3DS 2.0: The updated version of 3DS supports better customer experiences, including biometric authentication and smoother mobile transactions.

🟢 Implement Frictionless Flow: 3DS 2.0 enables low-risk transactions to bypass the authentication step altogether, minimizing friction for trusted customers.

🟢 Educate Customers: Clearly explain why 3DS is being used and how it protects them. Transparency can build trust and reduce confusion.

🟢 Optimize for Mobile: With the rise of mobile commerce, ensuring that 3DS works seamlessly on mobile devices is critical.

🟢 Work with the Right Payment Partner: A good payment processor can help you implement 3DS in a way that balances security with convenience.

How Maksu Helps Businesses Handle 3-D Secure

At Maksu, we understand the importance of balancing security, compliance, and a smooth customer experience. Here’s how we help businesses navigate 3DS challenges:

⚙️ Seamless Integration: Maksu’s solutions are designed to integrate 3DS 2.0 into your payment flow with minimal disruption to the customer experience.

✨ Frictionless Transactions: We leverage advanced risk-based authentication to ensure trusted customers can complete their payments without unnecessary steps.

🛡️PSD2 Compliance: Maksu ensures that your payments meet SCA requirements under PSD2, keeping your business compliant and secure.

📱 Mobile Optimization: Our tools are built to deliver fast, reliable 3DS experiences across all devices, from desktops to smartphones.

📊 Real-Time Insights: With our analytics and reporting tools, you can monitor authentication success rates and optimize your checkout process accordingly.

At Maksu, we believe that security doesn’t have to come at the cost of convenience. Our goal is to help businesses provide safe, efficient, and customer-friendly payment experiences.