Navigating the Changes in Visa and Mastercard’s 3DS Protocols

05 July, 2023 | 2 Min Read


Visa and Mastercard, two of the most prominent figures in the payments industry, have been continually evolving their security protocols to keep pace with the rapidly changing digital payments landscape. Among their most significant recent developments are changes to the 3D Secure (3DS) protocol.

The Evolution of 3DS

3D Secure, first introduced in the early 2000s, added an additional layer of security to online card transactions. The introduction of 3DS 2.0 in recent years marked a significant upgrade from the original protocol. It improved the user experience by reducing the need for cardholder intervention while maintaining high levels of transaction security.

The New Updates

The latest updates from Visa and Mastercard aim to further improve the 3DS 2.0 protocol, focusing on enhancing transaction speed, improving risk-based authentication, and creating a seamless user experience. These changes are intended to help merchants achieve higher approval rates, reduce cart abandonment, and mitigate fraud risks.

Impacts of the Changes

With the new updates, the authentication process will now leverage more data points, enabling more accurate risk assessment and reducing unnecessary step-ups. This shift results in smoother transactions and improved user experiences. Merchants can expect reduced fraud and chargebacks, higher conversion rates, and increased customer satisfaction.

Adapting to the Changes

Merchants must ensure their payment systems are updated to accommodate these changes. Adapting to these new protocols may require technological upgrades or modifications in the payment processing workflows. Payment service providers like Savannah can assist merchants with these transitions, ensuring their systems remain compliant and optimized for these changes.

The updates to Visa and Mastercard’s 3DS protocols are a welcome change, promising improved security, smoother transactions, and better customer experiences. By staying informed and prepared, merchants can make the most of these developments, enhancing their payment systems and, ultimately, their business growth.

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