What is 3D Secure and how does it protect me against fraud?

What is 3D Secure?

3D Secure stands for Three Domain Secure – the payment industry’s Internet authentication standard which has been developed by the major card companies. Visa has called their version of the scheme Verified by Visa and MasterCard have called their equivalent initiative MasterCard SecureCode. These are both collectively referred to as 3D Secure.

How does it work?

• 3D Secure authentication requires the cardholder to register their card to take advantage of this service. This is a one-time process which takes place on the card issuer’s website and involves the cardholder answering several security questions to which only the card issuer and cardholder will know the answer. The cardholder selects a password and agrees on a secret phrase, which will be used by the card issuer during each online transaction.
• If a customer is not yet registered with the scheme, the fact that the transaction is checked by Adumo Online for 3D Secure compliance should give similar protection from the customer denying that they processed the transaction (providing the customer’s bank is participating in the 3D Secure scheme).
• 3D Secure is predicted to become the industry standard and all online consumers will soon become as familiar with this, as when they enter their PIN at a cash machine or till in a shop.

For more information on 3D Secure and associated liability download the attached 3D Secure overview document.