Biggest change to 3D Secure in a decade

EMVCo’s new development will utilize richer cardholder [and device] data during the transaction which will result in far fewer password interruptions as stated in this MasterCard press release. One of the biggest changes that cardholders will notice immediately is that the onerous registration process (seen in the traditional 3D Secure protocol) will be eliminated, providing a pleasant online shopping experience for online shoppers. As the card-not-present (CNP) and 3D Secure transaction volumes increase, the importance of a standardized and seamless customer experience has never been more important. According to the press releases by EMVCo, it can be concluded that 3DS 2.0 will aim to help make online shopping safer and more convenient for cardholders by removing the necessity of having to authenticate via static passwords, (EMVCo press release 2015).

The initial 3D Secure protocol, co-written by Visa and Arcot (now CA Technologies), enabled secure online shopping by providing “3 Domain” communication between the issuer, merchant and cardholder and facilitated an authentication dialog between the cardholder and the issuer. The primary goal then was to improve security for online shopping and 3D Secure delivered. Over time, transaction abandonment became an issue which made it clear that creating a better user experience for online shopping was necessary. Industry leaders, like CA Technologies, developed solutions that focused on improving the cardholder payment experience for 3D Secure transactions by doing a risk assessment of the transaction to help determine if it was initiated by the legitimate cardholder. If the transaction was low risk, authentication could be bypassed which helped reduce transaction abandonment.

Now, new consumer devices, such as smartphones and in-app purchases, have changed how consumers interact and shop online. These innovative technologies spawned the need to enhance the 3D Secure protocol in order to fully support and optimize them.

Objectives of 3D Secure 2.0

1. Support authentication based on data elements shared through the protocol with focus on a frictionless shopping experience for the cardholder.

2. Make the message interface and authentication flows amenable to mobile platforms (multi-device, device agnostic, multi-channel, etc.).

3. Make the technology future proof with support for digital wallets and other forms of digital payments.

4. Align to country specific and regulatory requirements.

5. Move from static authentication to dynamic authentication when necessary. 

http://www.ca.com/content/dam/ca/us/files/executive-brief/ca-viewpoint-summary-of-3d-secure-2-0-and-how-ca-can-help.pdf