3-D Secure (3DS)

3-D Secure (Three Domain Secure or 3DS) is an extra level of security to ensure that the cardholder authorises every transaction with a card. This is implemented to reduce fraudulent activities for Card Not Present (CNP) transactions.

Card Not Present transactions are card payments made where the cardholder does not or cannot physically present the card at the point of payment. These types of transactions are commonly made over the Internet.

It is easy to get your debit card lost or its information compromised. Likewise, if your computer or mobile phone is lost or stolen and if any of these devices hold your card information, you can be exposed. This is where 3-D Secure comes in. It is an added layer of security that can prevent the fraudulent use of your card. To authorise a transaction via 3-D Secure, you must provide personal information that only the card owner should know, for example, a PIN. This means that ideally, you are the only person able to authorise transactions with your card, except this personal information is somehow compromised.

The presence of 3-D Secure on Paystack transactions means that a business owner has reduced liability. This is because verified transactions have better protection against chargebacks. It also increases the likelihood that the card's owner authorised this transaction, and even if it was not, your business may not bear the loss after you have provided value. 

There are three parties involved in the 3-D Secure process:

• The Payment Gateway – Paystack.

• The Card Network – Visa, MasterCard, Verve etc.

• The Issuing bank – The customer's bank that issued the card.

Here is a graphic to explain the payment process with 3-D Secure:

How do I activate my account for 3-D Secure?

Card issuers (e.g. your bank) have largely upgraded their systems to enrol their customers to 3-D Secure. Also, most cards are automatically signed up for 3-D Secure. If your MasterCard or Visa is not 3-D Secure enabled, please get in touch with your bank. They can activate your card, and you will get a PIN that will enable you to perform transactions anywhere.

Are there limitations to 3-D Secure?

3-D Secure is a proven technology to combat fraud, but this does not mean business owners cannot get away with it themselves. For example, 3-D Secure cannot control whether a business owner offers adequate value to the customer for a payment they've made. If, as a customer, you did receive what you paid for or are very dissatisfied with what you got, you can file a chargeback at your bank.

Will this increase the number of failed transactions?

Not necessarily. The aim of 3-D Secure is to add an extra layer of security for the cardholder, not to affect success rates. However, the transaction will fail if the card is not activated for 3-D Secure or if there is a mistake in the authentication process. 

What if I don't want 3-D Secure, can I turn 3-D Secure off?

3-D Secure authentication for online transactions is a compliance requirement for our transactions, so it can't be turned off. Regulators require it to protect customers from unauthorized transactions and to protect your business and Paystack from losses arising from chargebacks.