Modirum 3D Secure is a strong authentication solution leveraging the 3DS protocol. In 2023, Entersektacquired the Modirum 3-D Secure software business. These solutions have now been integrated into Entersekt’s 3-D Secure solutionsenabling modern e-commerce transactions that balance security and seamless customer experience.
The 3DS technology is designed to enhance online payment security by verifying the identity of cardholders before transactions are approved. It provides merchants, banks, and consumers with strong protection from fraudulent transactions while ensuring a seamless user experience. Modirum 3D Secure helps financial institutions and payment service providers comply with global security regulations, such as PSD2’s Strong Customer Authentication (SCA) requirements.
How does Modirum 3DS work?
3-D Secure (3DS) enhances online payment security by facilitating authentication across three domains: the merchant/acquirer, the issuer, and the interoperability domain. During a transaction, the 3DS protocol enables the exchange of data between the merchant and the issuer to assess the legitimacy of the transaction. This process can incorporate risk-based authentication to minimize friction for the cardholder, leading to a seamless and secure e-commerce experience.
What are the benefits of Modirum 3D Secure for payments stakeholders?
The key benefits of Modirum 3DS for FIs and customers include:
Advanced fraud prevention: 3DS used in conjunction with risk-based authentication, behavioral analytics, device intelligence, and biometrics enables FIs to detect and block fraudulent transactions.
Higher approval rates: Minimizes false declines by enabling secure, data-driven transaction approvals, improving conversion rates for merchants.
Frictionless user experience: Supports seamless authentication for low-risk transactions, reducing checkout interruptions and enhancing customer satisfaction.
Regulatory compliance: Helps financial institutions meet PSD2 Strong Customer Authentication (SCA) and EMV 3DS standards, avoiding compliance risks and penalties.
Operational cost savings: Reduces fraud-related expenses, lowers chargeback rates, and streamlines authentication workflows for greater efficiency.
How does Modirum 3-D Secure combat evolving fraud threats?
As fraud tactics become more sophisticated, financial institutions must adopt adaptive security measures. Modirum 3D Secure used in conjunction with modern customer authentication provides strongprotection against scam fraudthrough:
Real-time behavioral analytics: Identifies anomalies in user behavior to detect potential fraud attempts.
Multi-factor authentication: Using multi-factor authentication, including biometrics, for example, creates an effective fraud prevention approach.
Data-driven risk assessment: Real-time risk intelligence using contextual data, like device location, paints a clear picture of each customer to more easily block unauthorized access.
Additional resources:
Blog: 3-D Secure payment rails: The highway’s no good if nobody drives on it
Video: The benefits of modernizing 3-D Secure ACS with authentication and risk data