Snippet: In 1951, the first credit cards were introduced by Franklin Bank in New York. Since then, the payments’ space has come a long way, and whether it be through a browser, mobile app or connected device, consumers have more ways to pay than ever before.

In 1951, the first credit cards were introduced by Franklin Bank in New York. Since then, the payments’ space has come a long way, and whether it be through a browser, mobile app or connected device, consumers have more ways to pay than ever before. While this expansion in choices has given consumers the speed and convenience they now expect, the growth in security challenges – specifically verifying customers’ identity – has stubbornly kept pace.

Entersekt’s involvement with 3-D Secure over the years has given us a unique insight into the protocol’s journey through the shifting environments of evolving tech, the changing business environment, and developments in the fraud landscape.

If it doesn’t work, fix it

To paraphrase Robert Burns, “The best laid plans of mice and men often go awry.” 3-D Secure was developed with the best intentions: to reduce CNP fraud that accompanied the growth of e-commerce sales by adding an extra layer of security. While there’s no denying its positive impact on the payments industry, 3-D Secure’s path has not been an easy one to navigate. Much has been written about its problematic issues, especially consumers’ frustration with activation and authentication processes. To promote trust – and for the protocol’s potential to be realized – changes needed to be made.

Read about the remedy to unlock 3-D Secure’s true capability.

All you need is the right partner

In the fight against cybercrime, Swisscard AECS understood that the one-time passwords being used at the time were not working, and so went in search of something fresh and new to authenticate CNP transactions.

As a perfect example of a mobile-centric 3-D Secure implementation, Entersekt, together with Netcetera, helped Swisscard improve its card users’ experience of 3-D Secure, reduce abandonment rates, and meet changing digital payment security regulations, all with minimal customer disruption.

Read how with Entersekt’s help, Swisscard gave its cardholders the option of authorizing their 3-D Secure purchases using their mobile phones.

Overcoming the growing pains

The first legitimate online shopping transaction took place in 1994 (a CD of Sting’s “Ten Summoner’s Tales”). Quickly following that came Amazon’s online bookstore, changing the e-commerce landscape forever. The fraudsters, of course, kept up, with the move to chip cards giving an additional boost to card-not-present fraud rates.

Introducing 3-D Secure was the industry’s way of recognizing the need to step up security measures for online shopping. But as with any process of change, there were growing pains. The release of EMVCo’s updated protocol – EMV 3-D Secure – promised to ease these pains, while keeping pace with changes in the digital commerce landscape, including that all important factor: evolving consumer behavior and expectations.

This blog post describes EMVCo’s approach.

The customer is king…

Consumers’ power has been growing exponentially, ensnaring all suppliers – from the bargain-basement bookseller to the investment bank – in the never-ending search for the ultimate user experience. This is especially relevant in the e-commerce space, where there is always a host of contenders waiting with open arms for consumers disgruntled with the friction at a competitor’s online checkout. So rather than lose a customer, merchants tended to absorb the risk of a fraudulent card rather than introduce the added friction that additional security would bring.

This is where EMV 3-D Secure came to the rescue with its promise of a seamless authentication experience.

Read how EMVCo eased merchants’ never-ending quest for higher profits and brand loyalty in this blog post.

…But do you know enough about your customer?

The low adoption of 3-D Secure 1 by merchants left banks trying to craft security strategies that minimized user friction, but which left them unable to accurately identify fraudulent transactions – struggling with that oft-maligned balancing act between security and ease of use. In a digital world where user experience is everything, more information – such as device and consumer behavior data – is essential for better risk decision-making.

To better protect the consumer, issuer and merchant from CNP fraud – and to offer a much-improved user experience – the most important aspect of 3-D Secure’s redesign was the addition of a risk-based authentication engine. More data means better evaluation of CNP transactions, allowing more transactions to be authorized in the background, without user input.

You can find out about the benefits and challenges of this data gamechanger in this blog.

Being one of the first to have our solution accredited by all the major payment networks, Entersekt has a deep understanding of the 3-D Secure protocol and its evolution. The migration from 3-D Secure 1 to EMV 3-D Secure will be a complex one, but one that can be managed with the right partner. If you have any questions about EMV 3-D Secure or our unified solution to manage the transition, you can download our solution sheet or get in touch with us to request more information, arrange a demo, or contact our sales team.


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Revisiting authentication in the age of SRC and EMV 3-D Secure

Alpa Somaiya


From science to health research to fintech, Alpa is a self-confessed jack-of-a-few trades. When not despairing about the use of the Oxford comma, she enthusiastically collates, translates and disseminates information for your reading pleasure, and with the hope that we all learn a little something along the way.

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.