Global merchant accounts are always prone to financial fraud like identity theft, data infringement, etc. Account holders are business owners who always look for safety measures to bring their customer’s payments safety to their merchant accounts. Failure to provide a safe and satisfying payment experience can drastically affect the goodwill of a business. Especially when it is a high-risk business, the threat of losing the good image and also the customers is always there.
Thanks to the 3D secure technology that removes all the worries of the global merchant account holders, it adds another shield of safety around daily transactions. This blog is dedicated to varied insights into the meaning and nature of 3D technology.
What is 3D secure technology?
3D is a 3 Domain Server because this technology includes three parties.
- Acquirer domain – It is the merchant account provider that accepts card payments.
- Issuer domain – It is the financial company that issues the card.
- Interoperability domain – The payment system that connects the acquirer and the issuer.
How does 3D technology work?
In 3D-secured transactions, when a cardholder initiates a payment, the network asks him to authenticate his identity through a password sent to him. This password is a temporary PIN or SMS code without which the transaction cannot be completed.
6 Steps include in the 3D transactions –
- Card information collection
- Confirmation for 3D secure enrolment
- Client redirected to provider’s 3D secure page
- Security authentication through password
- Redirection to the website
- Payment confirmation
How does 3D security help prevent fraudulent transactions?
Now that you are clear about what 3D is and how it works, it is time to understand how it helps merchants keep the frauds away and ensure safe transactions.
The customer gets a notification of a one-time password – It has been mentioned above that 3D technology backed-up transactions do not complete without the code sent to the customer. If a customer has not initiated payment, the password will finally reach his e-mail or phone number only. In that case, the customer will immediately come to know that it is not him. Without entering the password, the transaction will remain incomplete; thus, the buyer can take the necessary action to prevent fraud. He can inform the merchant about the suspicious activity, and in turn, the merchant can ask his global payment gateway to stop the transaction.
Merchants can enjoy a liability shift – The issuing bank has total liability for a transaction in this technology. If a customer raises a money-back demand saying that an unauthorized payment has been made through his card, the issuing bank will handle it. Most of the time, the issuing bank takes care of the refunds. Just imagine how secure a merchant can feel through this advanced technology. Businesses with a global presence and especially a high-risk tag are always worried about transaction security. But with the 3DS, safety and even refund is no more an issue. However, it is also essential to understand that even if the card issuer pays for a refund, ultimately, it is the image of a business that gets affected.
Efficient chargeback management – The 3DS technology quickly detects the source of disputed transactions and helps identify suspicious transactions. Chargeback management is another added benefit of 3 Domain Server technology that merchants can exploit. Neither the merchant nor the merchant’s high-risk payment gateway has to worry about anything. For the financial well-being of their businesses, they can easily depend on 3D-secured transactions. After all, companies across the globe are implementing 3D technology to ensure their buyers pay in a safer atmosphere. A commercial revive may survive after a significant financial loss, but it cannot survive after losing the trust of its buyers. Goodwill is the most precious asset for a company, and it cannot afford to bear its loss. Chargebacks have always been a big concern for the merchants, and they are happy today because they have a robust solution in their hands. If you are a merchant, too, you can understand how great it feels to be confident and realize that fraudsters cannot harm your buyers and you anymore.
Conclusion
You can now easily understand the significance of 3 Domain Server technology for businesses. Today, when the international market has become so competitive and challenging, survival of the fittest is the only tactic. In the past few years, millions of financial fraud incidents happened while making payments. Now, circumstances are changing for good, and business owners feel more secure, whether high-risk or low-risk. They wanted an atmosphere of certainty, and with the help of new FinTech like 3DS, it has become possible. If you own a business and have not sophisticated your payments with 3DS yet, it is time to give it a thought and manage your transactions with confidence.