EMV 3-D Secure (also known as 3DS 2.0) is, indisputably, the hottest topic in the digital payments industry. Every day, there are more consumers initiating digital transactions from various connected devices, whether it be a smart phone, a tablet or a voice-controlled personal assistant. EMV 3DS will help ensure the safety of consumers in this new environment, and will be better than its predecessor in many ways.
Consumers, however, aren’t the only ones who will benefit from this transition. For years, merchants have struggled with false positives, which occur when a legitimate transaction is falsely declined, because it is thought to be a fraudulent transaction. False positives happen for several reasons, one of which is that, in the transaction flow, there isn’t enough data being passed back and forth between the merchant and the issuer. On both sides, there is a lack of communication, which creates situations where a merchant trusts a certain consumer, and knows that they are a legitimate consumer, however the issuer doesn’t have enough information to authorize the transaction.
EMV 3DS will solve this problem, by facilitating data-sharing between all three parties involved in a transaction: the consumer, the merchant and the issuer. In this new environment, both merchants and issuers will also have access to new and expanded data fields, which will hasten the authentication process by allowing it to occur behind the scenes.
Yesterday, Visa posted a blog about EMV 3DS that touches on the benefits of these new protocols, and how they will make the digital commerce world a better place. In this post, there are also some infographics that help explain the old transaction flow, the new transaction flow and, ultimately, how this new environment will create a better world for consumers, merchants and issuers.
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EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.