August 22, 2023
3-D Secure version 2.1 has vastly improved over the original 3-D Secure version 1.0. The updates have addressed the customer friction often experienced during the transaction process by enabling more data sharing between Merchants and Issuers. This allows for a more accurate risk-based decision-making process, which leads to smoother transactions with less interruption. Version 2.1 also introduces “frictionless flow,” allowing low-risk transactions to be approved without additional authentication, improving the customer experience.
Version 2.2 adds new features to better accommodate specific market requirements and regulations. This was done partly to meet the Strong Customer Authentication (SCA) requirements of the European Union’s Revised Directive on Payment Services (PSD2).
While both 3-D Secure 2.1 and 2.2 provide improved security for online transactions compared to the original protocol, 2.2 introduces greater flexibility and better support for evolving market needs, regulatory requirements, and mobile transactions. This highlights the ongoing evolution of security protocols in response to the changing landscape of online transactions and cybersecurity threats.
3-D Secure version 2 allows Merchants to send much more Risk Based Authentication (RBA) data. The RBA process facilitates the exchange of over 100 data points during a transaction, including user geo-location, device ID, shipping address, and previous transaction history, to assess the risk for that specific transaction.
The benefit of RBA is that it allows the Issuers to authenticate its cardholders without asking for any additional information for the majority of the transactions. For this reason, Merchants are encouraged to use the Hosted Integrated to send as much Risk Based Authentication (RBA) data as they can.
· Additional device compatibility
· Further fraud reduction capabilities
· Trusted beneficiaries
· Enhanced user experience
· Enables smooth integration to mobile banking authentication and biometrics
