Ever since the specs were released, in October 2016, 3-D Secure (3DS) 2.0 has been one of the hottest topics in the digital payments industry, and for good reason. There has been constant discussion in industry circles regarding these new specs, specifically related to their impact on merchants, issuers and consumers, with a real focus on the seamless, friction-free consumer experience.
Throughout this process, there’s also been some ambiguity, since there have been various changes to the official protocols since they were released. This uncertainty has, in some ways, led to inaction on the part of both merchants and issuers. Since there have been assorted changes, some in the industry still aren’t exactly sure about the implications, meaning they have been unwilling to actively embrace 3DS 2.0.
For both merchants and issuers, it’s very beneficial to be an early adopter, regarding some aspects of 3DS 2.0. One of the key facets, and biggest advantages of 2.0 is the enhanced data-sharing between the merchant and the issuer. Merchants can start collecting the additional data fields today, which will make the transition that much easier down the road. For all merchants, there are many benefits of early adoption, notably that, when the official protocols are released, there won’t be a significant adjustment period.
Additionally, early adoption will produce benefits that are directly related to the new specs, namely faster transaction speeds and the data-sharing, two factors that will make life that much easier. With all this extra data, the time that it takes to authenticate a consumer will be drastically reduced, from over ten seconds to less than one. Even so, both today and going forward, it will still be vital to find an authentication provider that can ensure that bad transactions are less likely to get through the system.
Cardinal has been preparing for this crucial shift in the industry for several years, which makes our rules-based authentication solution, Cardinal Consumer Authentication (CCA), a tool that is built for the future. By partnering with Cardinal, and using CCA, merchants and issuers will receive many of the benefits of 3DS 2.0. With One Connection to Cardinal, we can Drive your Digital Commerce.