About

Three-Domain Secure or “3DS” is a messaging protocol merchants use to authenticate their customers’ card information when processing card-not-present (CNP) e-commerce or mobile purchases and payments. By enhancing authentication, 3DS helps prevent fraud and provides an additional layer of security for CNP credit card and debit card transactions. This service is provided by all four major card networks.

The latest version of 3DS is formally known as EMV 3DS (inclusive of versions 2.0, 2.1, 2.2, etc.), and EMV 3DS provides a much more streamlined, less intrusive customer experience than the prior 3DS 1.0 solution.

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3DS Version Support

If you have not have fully migrated from 3DS 1.0 to newer versions, we can continue to process 3DS 1.0 transactions.

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PSD2 Mandate

PSD2 requires all e-Commerce transactions to be authenticated unless SCA Exemptions apply.

Benefits

EMV 3D Secure adds an additional layer of payment protection to online transactions. When 3DS is enabled during transaction, the cardholder is authenticated by the issuer. Typically, the cardholder is directed to an authentication flow on the issuer's website, and are asked to verify using means established by the issuer and cardholder.

While the major benefit of 3D Secure is to lower fraud, liability shifts from merchant to issuer for authenticated transactions.

Fraud Prevention
With an extra layer of security, CNP merchants will feel more confident knowing their data is rigorously authenticated. End users will likely not be aware during a frictionless transaction, unless they see a logo on the order page, which may provide the impression of added security.

Chargeback liability shifts
For an EMV 3DS authenticated transaction, liability most often falls with the approving issuing bank. Even if a cardholder claims a payment is not authorized, most of the time the card provider will be liable for managing refunds.
If an Issuer does not support EMV 3DS, Visa offers a stand-in processing service. MasterCard does not support this functionality.

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Restricted MCCs for Liability Shift

Please note that the liability shift currently does not apply to Merchants using MCCs 4829 and 6051.

Lower Chargebacks
Based on current trends, merchants are benefiting significantly from fewer chargebacks which means more money in your pocket. Enabling EMV 3DS helps to mitigate the resources associated with disputes management, chargeback penalties and fees.

High authorization rates and lesser declines
Data shows that issuers approve more transactions when using EMV 3DS and it reduces false declines for both merchants and issuing banks.

Better user experience
The EMV 3DS solution supports exemptions under SCA (Strong Customer Authentication) requirements, so the customers experience the least possible amount of friction on applicable transactions reducing costs and cart abandonment.

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How does 3DS compare with AVS or CVV2

CAVV returned by the Issuer is a cardholder device and merchant verification tool designed for e-Commerce. It provides a higher level of verification than either AVS or CVV2.

How it works

3DS uses XML messaging and SSL communication to secure and authenticate transactions.

Transactions in EMV 3DS Details
Frictionless Flow If the data is satisfactory for the issuer to confirm that the actual cardholder is making the purchase, the transaction will run through the “frictionless flow” which means authentication is completed without the need for additional inputs from the cardholder.
With EMV 3DS, there is a promise of friction-free payments 95% of the time when sufficient data is available to the issuer.
Challenge Flow If the issuing bank requests further validation of the transaction, the cardholder’s transaction is routed through the “Challenge flow” which will ultimately prompt the cardholder to enter additional validation data (most often a One-Time Passcode) to authenticate the payment.

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Non-Payment Authentication (No dollar amount required)

3DS allows for the authentication process to be conducted in the mobile application when the user registers their card details on a merchant’s mobile platform for later use. The cardholder could be authenticated even without making a purchase. This is very useful for adding credit cards to e-wallets.

TabaPay 3DS Solution

Browser-Based – In a browser-based EMV 3DS implementation, the transaction could go through either a frictionless or a challenge flow before the payment is authorized based on the issuer bank

Mobile Experience – For 3DS mobile experiences, TabaPay provides native app functionality via a 3DS SDK in tandem with our APIs. This functionality includes configuration for clients to match look and feel, perform 3DS cardholder authentication, collection of device data, and complete authentication. Available SDKs will assist merchants with implementation of the authentication protocol for their apps on Android and iOS platforms.

3DS Setup

The following is a breakdown of all potential EMV 3DS scenarios that TabaPay supports.

Integration Scenario # Client Integration Supported Environments Pre-Requisite
Scenario #1 Integration with TabaPay SDK for Best-in-Class Mobile Experience Mobile • Sign up for TabaPay’s new EMV 3DS SDK and obtain the required credentials (TabaPay facilitates this process).
• Account ID will be required for 3DS APIs with TabaPay
Scenario #2 Integration with TabaPay APIs only Web • Sign up for TabaPay’s new EMV 3DS API and obtain the required credentials (TabaPay facilitates this process).
• Account ID will be required for 3DS APIs with TabaPay

Scenario 1: 3DS Mobile Experience using TabaPay 3DS SDK

TBD

Scenario 2: 3DS Web Authentication with TabaPay

A 3DS web authentication flow begins with an initial payment request. A payment request contains the 3DS objects demonstrating that a 3DS authenticated payment is required.
Responses will be provided under three scenarios: payment is authorized without a challenge, challenge is required, or there’s been an error (if something goes wrong or the transaction is refused).
Merchants then handle the transactions based on the result codes.

Detailed Requirements
The enclosed information on TabaPay’s 3DS APIs is also outlined on our developers’ page. https://developers.tabapay.com/default.html?v=21.0620
Additionally, a backend 3DS web demo is available for review here: https://developers.tabapay.com/demos.html


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