How to manage the complexities of 3D Secure compliance, with ease

Compliance Payments Technology
As card-not-present (CNP) attacks continue to spike, issuers and merchants that have yet to implement 3D Secure technology, or those relying on outdated protocols, are putting themselves – and their customers – at risk. What’s more, banks that continue to avoid the topic risk losing customer trust and loyalty and could face hefty penalties for non-compliance with the 3D Secure industry standard.
It’s no surprise that managing a complex compliance ecosystem seems like a burden for many issuers and merchants. But here’s the good news — it’s possible to make 3D Secure and other regulatory mandates work for you. Read on.

But first, how 3D Secure has evolved

The first version of the 3D Secure protocol, 3D Secure 1, was developed by Visa in 1999 with the aim of adding extra security for online card payments. And it did that, mostly. Unfortunately, bad design and use of outdated authentication technology meant that the user experience was far from ideal, often leading to high cart abandonment rates since:
  • Users couldn’t view the authorization page on their devices,
  • It didn’t work on mobile browsers,
  • App loading speeds were frustratingly slow,
  • The pop-up often looked nothing like the banking app, causing suspicion, and
  • Merchants often bypassed the mechanism.
Fortunately, in 2016, a much-needed upgrade was initiated by EMVCo, a global technical standards body. Then, with the introduction of their EMV 3-D Secure protocol, all stakeholders could finally support secure, modern e-commerce payment authentication experiences.

Today, the benefits of EMV 3-D Secure for merchants and issuers include:
  • More data points
  • Additional customization options
  • Reduced fraud
  • Improved risk assessment
  • Increased transaction approval rate
  • Fewer false declines
Banking customers, of course, enjoy improved security and a consistent, uninterrupted user experience as a result, ultimately leading to heightened confidence in the bank's systems.
Following the rollout of EMV 3-D Secure version 2, EMVCo has continued to innovate and improve the 3D Secure protocol. On the one hand, these advances in technology help boost security and enhance the user experience of online payments. But, on the other hand, it also creates more opportunities for merchants and issuers to fall behind with their mandatory compliance requirements.
Read more: 5 steps to global 3D Secure compliance coverage. ✔

Simplifying your journey to 3D Secure compliance

At Entersekt, we can help you transform 3D Secure compliance from a hassle into a competitive advantage. Our Context Aware™ 3D Secure ACS is always 100% compliant and up to date, leaving you free to focus on other important business priorities like improving operations, expanding your customer base, and growing your revenue.
We’re also constantly innovating cutting-edge authentication solutions — like our layered, Context Aware™ Authentication solution — to keep fraudsters out. Using a combination of active and passive authentication technology across all digital channels, and context-rich data on each customer transaction, you’re able to deliver the best authentication solution in the moment. Essentially, consumers can complete their e-commerce checkouts without unnecessary friction, secure in the knowledge that their data is safe.
Explore how to turn a banking compliance hassle into a competitive advantage in our new ebook.
Explore how to turn a banking compliance hassle into a competitive advantage in our free new ebook!

Ensuring the right payment authentication fit

As the name suggests, a one-size-fit-all approach to payment authentication doesn’t work for everyone. By partnering with Entersekt, however, you can customize our solution to suits how your business works.
For example:
  • Usually, larger banks want more control of their data and ACS customization options. Our on-premise ACS deployment solution offers issuers more control and configurability, enabling them to better understand and protect their customers.
  • Smaller institutions and credit unions, on the other hand, typically prefer to stay focused on their core business and leave the technical implementation and management to the experts. In their case, a Cloud ACS solution would be a good match for their business needs.
Ultimately, with the latest, up-to-date customer and payment authentication technology, issuers enjoy more data points relating to their customers’ transactions. Which means your system receives more context into who is transacting, when, where, and on what device, and has the insight to manage risk effectively.

Plus, the latest technology supports how consumers shop online, without adding unnecessary friction to their payment journeys. The bottom line — less cart abandonment, more successful transactions, happy shoppers, and more revenue!

In our latest 3D Secure ebook, we debunk four common compliance myths that might be holding you back. Get your copy now — it's free, no email required!