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Chapter 2 : Annoying but VERY Important

What Is 3D Secure and Why Does It Matter?

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IN THIS LESSON

If you’re taking online card payments, you’ll likely come across the term 3D Secure.

Sometimes referred to as 3D Secure 2.0, Visa Secure, or Mastercard Identity Check.

In this guide we explore what 3D Secure is, and why it’s important for your business.

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  • 3D Secure (3DS) is an extra layer of security for online card payments. It helps confirm that the person making the payment is the true cardholder.

    You’ve probably seen it yourself — after entering card details, a customer is asked to complete a quick security step, such as:

    • Approving the payment in their banking app

    • Entering a code sent by text

    • Using Face ID or fingerprint on their phone

    This process is designed to reduce fraud and protect both businesses and consumers.shops, salons, pubs, and market stalls

  • Since March 2022, 3D Secure is a legal requirement in the UK and across Europe under Strong Customer Authentication (SCA) rules, part of the Payment Services Directive 2 (PSD2). If your online checkout doesn’t support 3D Secure, many payments will fail or be declined.

    ✅ Most modern payment gateways (like Stripe, Square, Worldpay, Opayo, etc.) now include 3D Secure by default.digital wallets (Apple Pay, Google Pay)
    Best for: Ecommerce businesses, online services, remote bookings

    • Reduces fraud – makes it much harder for stolen cards to be used

    • Meets legal requirements – avoids failed payments under SCA rules

    • Increases customer trust – they know their details are secure

    • Liability shift – in many cases, if a fraud chargeback occurs, the liability shifts to the card issuer, not your business (if 3D Secure was used)

    • Extra step in the checkout process – can lead to some drop-offs if customers get frustrated or fail to complete authentication

    • Not all customers understand it – some may be confused by the security prompt

    • Occasional false declines – if a customer’s phone or app isn’t working properly

    💡 Tip: The newer version, 3D Secure 2.0, is much faster and more user-friendly than older versions. It’s app-based, works with biometrics, and reduces friction while maintaining security.

  • One of the biggest benefits of using 3D Secure is the liability shift. If a transaction is authenticated via 3D Secure and still turns out to be fraudulent, the card issuer (not you) is typically responsible for the chargeback.

    However, if 3D Secure isn’t used — and the transaction is disputed — your business may be liable for the loss and chargeback fee.

    ✅ Bottom line: Always ensure your online payment setup supports 3D Secure. It protects your business and helps ensure successful transactions.

Final Thoughts

3D Secure is no longer optional — it’s now a key part of accepting card payments online securely and legally in the UK. It helps prevent fraud, keeps your customers’ details safe, and protects your business through liability shift.

While it adds an extra step to the checkout process, the latest version (3D Secure 2.0) is designed to be fast, mobile-friendly, and user-friendly. Most reputable payment gateways now include 3D Secure as standard, so there’s no reason not to use it.

✅ If you're selling online, make sure your payment setup is fully compliant and supports 3D Secure — especially for higher-value or cross-border transactions. It’s one of the simplest ways to reduce risk, avoid chargebacks, and stay protected.

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