EMV 3DS 1.0

From EMV 3DS 1.0 to 2.2 – The Evolution of 3DS

According to one Experian Information Solutions report called the E-Commerce Attack Rates report, about 6.64% of the US population has fallen victim to identity fraud online. Instances of fraud attacks online also grew by about 30% in 2018 and much more post the pandemic than ever before.

To keep businesses and customers safe, several preventive measures and security protocols exist for safe online transactions and dealings. One of the leading protocols most businesses follow is the 3D Secure protocol which significantly reduces unauthorized transaction risks for businesses.

The 3DS protocol was built by MasterCard, Europay, and Visa as technical security standar that increases the security around debit and credit card transactions.

The Evolution of SCA (Strong Customer Authentication):

The new rules for SCA (Strong Customer Authentication) were implement in most European countries in 2021. A section of this mandate required the usage of 3DS for payment authentication. Since EMV 3DS 1.0 was built, the makers have work towards its continuous evolution to align with the security concerns of rapidly evolving customers.

By October 2022, acquirers and issuers will have to implement all the enhanced standards that have been announced for securing EMV 3DS 2.2 in both the US and Europe. Any enterprise wanting to retain its competitive edge must consider the impact on its enterprise-level SCA strategy.

What is SCA?

Authentication refers to the process through which a buyer confirms who they claim to be. Customer identity can be verified in multiple ways for banking transactions and remote shopping. This could be:

  • Information a customer knows, such as a password or PIN
  • Something a customer possesses, such as a device or key
  • Something integral to a customer, such as a fingerprint or a retina scan

To increase remote payment security, the revised European PSD2 (Payment Services Directive) in Europe demands at least two factors for authentication while implementing SCA.

What is EMV 3DS 2.2?

3DS 202 refers to the latest and most enhanced version of the 3DS security standard. It is own by the global body for secure transactions known as EMVCo.

The acquirer, issuer, and card scheme comprise the three domains of the 3S protocol. When they are connecte, it helps customers authenticate themselves to their issuer as they shop online. The additional security layer helps in preventing unauthorize card usage and protects e-commerce businesses from being expose to multiple types of dispute payments.

Key Differences in the 3DS 2.2 Protocol:

First things first, the v2.2 protocol has been optimizing for a wider range of devices like PC, mobile consoles, and Smart TVs along with in-app payments. This means no more pop-up windows on your payment device and a more frictionless payment process.

Also, merchants can now share over 100 data elements with card issuers for an improved and enhanced risk-scoring method. The previous exchange was typically limite to 8 points in the 3DS 1.0 protocol. This ensures improve risk-based authentication.

Choose a payment gateway that implements secure protocols for better identity authentication services.

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