Protecting Your Business from Payment Fraud with 3D Secure

By Whitney Troxel

With so much of day-to-day operations conducted digitally, payment fraud and chargebacks are a real threat to businesses that accept payments from customers. 3D Secure (3DS) technologies offer a powerful tool for protecting against fraudsters attempting to exploit vulnerable elements of the online checkout process.

By understanding how these tools can help protect your company’s finances and reputation, you can make sure that your online payments system remains secure. In this blog post we discuss what role 3DS plays in mitigating payment fraud and chargebacks while providing an overview of its features.

What is 3D Secure?

As the world becomes more digitized, the need for secure online transactions grows stronger. 3DS is a security protocol designed to add an extra layer of protection to online payments. It verifies a customer’s identity with a unique passcode or biometric authentication before processing the payment.

Your business can implement 3DS into your payment processing by utilizing a 3DS payment gateway or integrating with a fraud management system.

Benefits of 3DS

With its advanced security features, 3DS has become an industry-leading solution for secure payments and provides immense assurance to both consumers and business alike. Benefits of 3DS include the following:

  • Decreased chargebacks, fraud, and declined payments — By adding an extra authentication step, the chances of fraud, chargebacks, or declined payments are significantly decreased as the liability for fraudulent transactions shifts from the business to the card issuer.
  • Increased trust — 3DS has become a standard for Card-Not-Present (CNP) transactions, and can help customers feel more confident purchasing goods or services from your business.
  • Meets Strong Customer Authentication (SCA) requirements — SCA was established by the European Union several years ago and has been adopted by several other countries across the globe. If you wish to expand globally, 3DS is crucial.

Disadvantages of 3DS

While 3DS has substantial security benefits, it also has some drawbacks, including the following:

  • Potentially poor user experience — The additional step of entering a password or code can make the checkout process clunky and frustrating.
  • Abandoned carts — If customers get too frustrated with the authentication process, they can decide to abandon the cart, resulting in lost sales for you.

Fortunately, these drawbacks can be mitigated by choosing the correct payment gateway.

Choosing the best 3DS payment gateway

When it comes to choosing the perfect payment gateway for your business, security should be at the very top of your priority list. In order to ensure that your transactions remain safe and secure, 3DS technology is an absolute must-have. It’s not an overstatement to say that your reputation and profit margins are on the line, so it really pays to make the right choice.

But security isn’t the only factor to consider when selecting a payment gateway. You’ll also want to evaluate fees, transaction speed, and integration options. But here’s the thing: not all payment gateways are created equal. That’s why it’s crucial to research each gateway’s reputation for reliability, top-notch customer support, and compliance with data protection regulations. Don’t skimp on your homework here. The decision you make will impact your business for years.

With a bit of strategy and careful investigation, you can discover a payment gateway that will elevate your customer service and reinforce your company’s defenses against potential cyber threats. Don’t settle for a one-size-fits-all solution. Take the time to uncover the best fit for your business and ensure peace of mind for both you and your valued customers.

Why choose Nexio?

Nexio provides scalable commerce solutions that empower businesses with adaptable and sustainable growth strategies. Our single-platform solution gives businesses access to a modular network of connections, tools, and payment services. We enable businesses to develop long-term strategies that:

  1. Simplify payment complexity
  2. Optimize payment processes
  3. Scale with confidence

With Nexio, you’re not just buying the technology to facilitate payments. You’re partnering with a team of experienced professionals that help you maximize the value of the technology. We’re invested in helping you achieve your business goals and will help guide you to make strategic decisions and changes at the time that makes the most sense for your business.

If you have any further questions about best practices or processes for implementing 3DS, feel free to contact our team for an obligation-free consultation. We’ll help guide you through this process so you can make an informed decision.