May 28, 2019
3DS 1.0 – consumers and merchants the world over may not have known its name, but they sure knew of the maddening problems it could cause at the checkout. False declines, frantically fumbling around for four-digit codes, abandoned shopping carts – you name it, 3DS 1.0 caused it.
But now there’s a new protocol on the block. It’s called 3DS 2.0 (or officially – EMV® 3-D Secure), and businesses and shoppers alike will love how much has changed since 3DS 2.0.
3DS 2.0 – An impressive successor to 3DS 1.0
Get set for a wholly new and completely improved checkout experience. Here’s what to expect…
Say goodbye to those authentication steps
No longer will users be given a flat out ‘computer says no’ (as 3DS 1.0 did). Now there will be two situations:
• Where a transaction is trusted, the user will simply await the payment confirmation
• Where a transaction is picked up as suspicious, the user will need to confirm the purchase. This will be achieved via either:
o Two-factor authentication – with a code sent by email or SMS OR through…
o Biometric authentication – Using a tool they’ve used previously (such as their fingerprint or a facial scan via their phone)
Farewell, to those many false declines
As 3DS 2.0 will use 10x the amount of data to verify transactions, this protocol will ensure that there are fewer false declines (and fewer exasperated shoppers!). Which leads is to our next point…
Hurrah! For reduced cart abandonment
No longer will consumers have to wrack their brains for their passcode every time they want to buy online. So simplified and streamlined will their experience be, that they’ll check out in just a few seconds (compared to the eight seconds that 3DS 1.0 took).
Say hello to mobile-ready security
It’s no overstatement to say that 3DS 2.0 has a lot of catching up to do. After all, 3DS 1.0 was launched all the way back in 2001 – an era in which the smartphone was yet to be invented (heck, the best-selling phone of the year previous was the Nokia 3310!).
The brand new EMVCo protocol is mobile-ready and easily integrates into mobile apps, as well as mobile browsers.
Welcome, endless transactional data
3DS 2.0 uses an impressive 150 data points to asses each and every transaction (3DS 1.0 had just 15).
A certain number of these are essential for the transaction, while others are optional. That said, the larger the amount of data a merchant shares, the better the issuer’s transactional decisions will become.
Make more decisions, merchant – with 3DS 2.0 opt-out and non-challenge mode
Previously merchants had a choice – use 3DS 1.0, or don’t. There was no in-between. With 3DS 2.0, there is. Merchants can select which transactions they push through the new protocol, and which they don’t want to.
Merchants will also be able to set their 3DS to ‘no-challenge’ mode if they wish; for some businesses with unusual risk models, this feature will finally allow them to take control of their approval and decline decisions.
3DS 2.0 is smarter, faster, and less frustrating (not to mention the stronger fraud-detection). Having been implemented since late 2017, 3DS 2.0 will be the standard process for all merchant-attempted 3-D secure transactions from April 2019.
