What is 3DS?

Introduction

3DS stands for 3‑D Secure — a security protocol for online credit/debit card transactions that helps verify that the person making the payment is actually the legitimate cardholder. It's also known as "Verified by Visa" or "Mastercard SecureCode". 

The system adds an extra authentication step during the checkout process, often involving a one-time passcode or other verification method provided by the card issuer. 

How it works: 

3D Secure adds an extra step to the online payment process. After entering card details, the customer's bank (the card issuer) verifies the transaction by prompting the customer for additional information, such as a one-time passcode sent via SMS or a password associated with their card. 

Purpose: 

The primary goal is to prevent unauthorized use of credit and debit cards online. It ensures that the person making the purchase is indeed the authorized cardholder. 

Benefits for businesses: 

3D Secure can reduce fraud, leading to fewer chargebacks and increased customer trust in online transactions, potentially boosting sales.