At HostedPCI we offer both 3D Secure 1.0 and 2.0 implementation with multiple different gateways in order to meet clients’ different needs. 3D Secure 2.0 is not only an update of 3D Secure 1.0 but rather it is a whole new process that focuses on the customer experience as well as maintaining the customer’s fraud protection. 3D Secure 2.0 has new and improved solutions for many issues that were present with 3D Secure 1.0.
One of the major drawbacks of 3D Secure 1.0 was its use of static passwords. The use of a static password meant the client was required to remember the password for all future transactions. It also increased the fraud vulnerability because the password can leak or be stolen which will compromise the security of the card. 3D Secure 2.0 gets around this problem by using more sophisticated authenticators such as One Time Password which do not have to be remembered and can not be compromised
Implementing 3D Secure 2.0 provides many benefits for merchants for example merchants will receive an increased auth rate, resulting in over 10% more transactions are approved. 3D Secure 2.0 also helps with risk assessment and any liabilities that occur are the responsibility of the card brands instead of the merchants or the custom.