Dewald Nolte, chief strategy officer at Entersekt, said 3-D Secure (3DS), the security protocol that was refreshed seven years ago, is an essential tool in fighting fraud.
At a high level, 3DS is designed to act as an equivalent to EMV chips and PIN cards, he told PYMNTS.
“It’s the digital way of enabling a bank to authenticate their cardholders in real time during an eCommerce transaction before the transaction is submitted for authorization or processing,” he said.
The security protocol has been around for over 20 years, and one of the big challenges impacting current adoption has been the fact that the first version of it, as he put it, “did not do anyone any favors.”
The initial interaction was clunky, resulted in friction at the point of interaction for consumers, and cart abandonment was high — sometimes as high as 50%. Merchants, for their part, were hesitant to embrace the protocol and the two-step authentication, as the limited data sharing between the enterprise and issuer didn’t support frictionless authentication and fueled false declines, he said.