3D-Secure is a card payment protection technology for online payments. The technology was developed by Visa. Soon, it was taken over by all financial institutions.
3D-Secure technology is an XML protocol and that is empowered for secure payments. To confirm the identity, the client receives an SMS with a verification code on the phone. But this is just the tip of the iceberg. There are not many ways for payment systems and banks, as they can check who uses the card to pay. The term “3D-Secure” itself translates to three domain protection. 3D = 3 Domains. In this case, 3 domains are involved:
- Issuing bank;
- Bank Acquirer;
- Payment system.
If 3D-Secure technology is enabled on the card, another step appears between entering the card data and the actual payment. The cardholder must enter a secret code. This code can be either permanent or one-time. The permanent code is less reliable, since it can also be lost, for example, when paying on a computer that is infected with a virus. But usually comes a one-time digital password.
The bank sends the code only to the phone number indicated in the agreement between the cardholder and the issuing bank. It helps to identify that the transaction is made by the cardholder to avoid fraud. If a cardholder has a required sum the transaction is succesfully made.