3D-Secure

3D Secure: How to Make Online Shopping Even Safer

How MasterCard SecureCode and Verified by Visa Help Prevent Fraud

Consumers rely heavily on ecommerce despite the increased risk of criminal fraud and cybercrime. In an attempt to bridge the gap and make our favorite shopping experience safer, many consumers implement the best online security technologies available. If you haven’t already considered 3D Secure, now’s the time to start using this advanced protection.

What is 3D Secure?

3D Secure is a fraud prevention technology originally implemented by Visa under the title of Verified by Visa. MasterCard has since embraced the technology with its SecureCode.mastercard_securecode

3D Secure participants receive an additional popup window during the checkout process while shopping with an affiliated online merchant. The shopper will need to enter the predetermined security code to continue with the checkout process. This code is similar to an ATM PIN number used to verify the cardholder’s identity.

Once the cardholder enters the code while shopping with a participating merchant, the merchant will send the code to the issuing bank (the financial institution that issued the credit card) for validation. If the correct code was entered, the transaction will be processed. If the code doesn’t match what’s on file with the issuing bank, the transaction will be terminated (the cardholder can proceed with a different card if one is available).

Why Should I Use 3D Secure?

3D Secure helps ensure the actual cardholder is making a purchase, not a fraudster. In theory, only the true cardholder would know the predetermined code.

A criminal might gain access to your credit card information, but without your personal code, the account information is useless. 3D Secure helps prevent unauthorized transactions from happening.

Does 3D Secure Actually Prevent Fraud?

Online shopping is famously known as one of the weakest commerce channels (perhaps only slightly less risky than mobile commerce). Therefore, online merchants and card networks (Visa, MasterCard) are constantly searching for any technologies that will help deter fraudsters. Some tactics are more effective than others.

3D Secure stands for 3 Domain Secure and works to protect three members of the credit card transaction chain of events:

  • The merchant
  • The merchant’s bank
  • The card network

As you can see, the cardholder’s interests aren’t necessarily a priority. These three protected individuals are the ones who suffer most in cases of unauthorized transactions. It might be assumed that the cardholder is the victim; but ultimately, the consumer’s assets are protected.

Consumers always have the right to file a chargeback in situations of fraud. Cardholders will get their money back; merchants always lose (sometimes significantly) in cases of fraud.

While consumers have the right to file a chargeback, it isn’t always the best option (and illegal in any situation other than fraud). The chargeback process is complicated and lengthy, meaning you’ll have to jump through a lot of hoops and wait a long time to get your money back.

If you do become a victim of fraud (or would like to dispute a credit card transaction for any other reason), it is better to secure a refund from the merchant. Fill out the form to the right; we’ll get your money back quickly and painlessly without a chargeback or additional expenses on your part.

While a refund (or chargeback) is certainly an option, it is far better to prevent the fraud from happening in the first place. That’s where 3D Secure comes in.

Programs like MasterCard SecureCode and Verified by Visa were designed to protect merchants and banks from financial losses. While consumers are also protected, their security is sometimes considered secondary.

To effectively use 3D Secure to protect yourself, you’ll need to do your part to minimize risk.

  • Choose a unique personal code. Don’t use something generic that would be easy for hackers to figure out–like 1234 or 2222. Likewise, don’t use digits that would be easy for a family member or friend to guess—like your birthday.
  • Don’t answer the secret questions truthfully. If you forget your code, you’ll be asked to provide the answer to your secret question in order to proceed with the transaction. However, criminals can easily click the “forgot passcode” and try to reset your account. If you choose an obvious answer, a criminal might easily figure it out. An example of a safe answer might be “purple polka dots” when asked to disclose your first pet (“dog” would be an insanely easy answer to guess!).

Not all online merchants use 3D Secure; therefore, your protection isn’t guaranteed everywhere online. And your bank might not offer 3D Secure for your credit cards. You’ll want to ask if the financial institution you bank with offers this protection.

Some banks take a more active role in protecting their customers. If you are unsatisfied with the 3D Secure options provided by your bank, see if another one is better suited. For example, if the bank simply asks for authentication information found on the card (like the cardholder’s name or the CVV code printed on the signature panel) after clicking the “forgot passcode” option while shopping, the process is completely ineffectual. Make sure the “forgot passcode” prompt asks questions only you could answer. Some banks text the new code to the cardholder, meaning the criminal would also need access to your phone to proceed. Shop around for a 3D Secure package that really protects your account.

How do I Enroll my Cards?

You’ll want to enroll your credit cards with MasterCard and Visa respectively. Be sure to read the terms and conditions carefully to better ensure your online safety. You can also enquire with your issuing bank.

Staying Safe Online

Remember, technology is prone to errors. Your safety isn’t guaranteed. Always use caution when shopping online. Ultimately, your financial security is dependent on your own vigilance. Use 3D Secure to help make your own safety efforts more effective.