Security is at the heart of the needs of today’s payment processors and the merchants they serve.

Security systems that protect company and customer data ensure reliable transaction systems that support businesses in today’s marketplace. EMVCo’s 3-D Secure protocol is undergoing an update, and payment processors will be able to implement new tools and strategies to maintain payment processing security.

Understanding 3-D secure

The primary purpose of the 3-D Secure protocol is to allow customers to verify their identities when purchasing online using their Internet browsers. The payment industry uses this protocol under the MasterCard SecureCode and Verified by Visa banners.

The online marketplace has evolved since 3-D Secure was first released. The new update is being released as a way to improve the online user experience and better serve consumers who use smartphones and other mobile devices to make purchases.

EMVCo, which owns MasterCard, Visa, American Express, and other credit card companies has been responsible for developing 3-D Secure since 2015.

They’ve outlined the specifications for 3-D Secure 2.0, which seek to improve end-to-end processing and risk-based authentication data. The update will also work to prevent payments that have not been authenticated and protect consumers who have had credit card numbers stolen or duplicated.

Preparing for the upcoming 3-D Secure 2.0

The documentation for 3-D Secure is scheduled to be released in early 2017. Visa has begun developments to prepare its authentication system to reflect these changes.

The company plans to set a deadline for April 2018 to allow European merchants to fully migrate to the new specifications. This gives all organizations enough time to implement services and tools that meet the new specifications of 3-D Secure 2.0.

What 3-D Secure 2.0 means for the future

3-D Secure 2.0 will be available for transactions made on mobile devices and within applications. Authorization streams will require merchants to provide information in addition to those related to the transaction.

This improves the issuer’s ability to validate users without the need for passwords, which has contributed to cart abandonment and other issues. It will also work to reduce the incidence of fraud online and on mobile devices.

The activation of 3-D Secure 2.0 will vary between locations. Europe will have to prepare for the April 2018 activation, but the dates for other countries have not yet been established.

3-D Secure 2.0 updates the previous protocol specifications to help improve payment processing and accommodate today’s mobile users.