How to make card payments safer with 3D Secure Authentication

Written by Admin | Feb 25, 2025 12:00:00 AM

If you're expanding into new markets or simply tightening up your payments process, security can't be a bolt-on. It needs to be built in. That's where 3D Secure (3DS) enters the picture. It gives you a direct way to authenticate customers during online card payments—quietly reducing fraud without disrupting the checkout flow.

What is 3D Secure, exactly?

3D Secure is a behind-the-scenes layer that validates a customer's identity before a card payment is finalised.

It can verify identity using:

One-time passwords (OTPs)
Fingerprint or face recognition
In-app prompts from a banking app

The goal is simple: confirm the buyer is who they say they are. And do it fast enough that they barely notice.

How it works in practice

Here's what typically happens:

The customer initiates payment: They enter their card details at checkout.
Authentication begins: They're briefly redirected to their bank for verification.
Identity check: The customer verifies using an OTP, biometric scan, or a push message.
Completion: If authentication passes, the transaction goes through.

You get fewer fraudulent transactions. They get peace of mind.

Who should prioritise 3DS?

3D Secure isn't for every single payment – but for some businesses, it's a must-have.

You'll see value fast if you:

Sell in regulated regions like Europe or India
Operate in sectors where fraud is common (travel, electronics, gaming)
Handle many cross-border card payments
Process transactions with above-average order values

If any of those describe you, skipping 3DS may not be worth the risk.

Why it matters

Security isn't the only benefit. With the right implementation, 3DS also brings:

Better fraud control: Block suspicious activity before it impacts your bottom line.
Fewer chargebacks: Prove the buyer authenticated the purchase.
Compliance coverage: Meet regional regulations with less manual overhead.
Stronger customer trust: Shoppers see you're serious about protecting their data.

Comparing 3DS1 and 3DS2

Capability	3DS1	3DS2
User interface	Popup; often clunky	Adaptive; works well on mobile
Data exchange	Minimal	Rich detail shared with issuer
Device flexibility	Desktop-focused	Optimised for both mobile and desktop
Frictionless option	No	Yes
Regulation readiness	Lacks support for newer mandates	Compliant with SCA and newer guidelines

If you're still running 3DS1, it's time to move forward.

How to get started

It doesn't need to be complex. Here's a practical setup path:

1. Pick a gateway that supports 3DS2

Look for built-in support for 3DS2, along with fallback for 3DS1 where needed. Solutions like Antom already offer this.

2. Activate it in your dashboard

Many providers make this a toggle. For more control, set custom rules for when 3DS should trigger.

3. Run tests first

Try different card types, devices, and order values. Your goal: verify the flow and confirm there's no friction for your customers.

4. Prepare your customers

Let them know what to expect. Even a short heads-up can prevent hesitation at checkout.

5. Monitor outcomes

After going live, track performance. Start with these metrics:

What to measure post-launch

Focus on indicators that reveal whether 3DS is helping or hindering.

Authentication pass rate: How often identity is successfully verified
Drop-off at verification: How often users abandon the checkout
Chargebacks on 3DS-authenticated payments: Ideally close to zero
Approval rate change: Measure before vs. after adding 3DS
Friction rate: Proportion of payments requiring full challenge vs. silent approval

Regulations: Where 3DS is mandatory

Depending on where you operate, 3DS might not be optional.

European Economic Area: Strong Customer Authentication (SCA) via 3DS is required under PSD2
India: Card transactions must go through two-factor authentication
Singapore, Indonesia: Banks and regulators increasingly recommend or require 3DS

Not following these can lead to declined transactions or even fines.

Misconceptions to set aside

Let's tackle three common ones:

"3DS is hard to set up"

Not if your payment gateway handles it. Most platforms have streamlined this.

"It adds too much friction"

The updated protocol (3DS2) is built to reduce visible steps. Most buyers won't even notice it.

"Only the bank benefits"

Actually, merchants gain quite a bit – fewer disputes, better approval rates, and stronger customer retention.

Choosing a 3DS-ready partner

When reviewing potential providers, ask whether they offer:

Full 3DS2 with smart fallback options
API-level control over when and how 3DS is triggered
Built-in rules for exemptions (e.g., for low-risk customers)
Support across regions with specific compliance needs
Clear reporting dashboards to track what's working

Without these, you risk higher abandonment and weaker protection.

3D Secure isn't just a security protocol. It's a strategic layer that helps you reduce fraud, meet regulatory standards, and preserve conversion across geographies. The best part? Once set up, it runs quietly in the background – protecting you without slowing things down.

Talk to us about implementing 3DS for your business.

View full post