3D Secure (3DS) is a security protocol that adds an extra layer of protection for online card transactions. It helps verify the identity of the cardholder during a transaction, reducing the risk of fraud. Major card networks like Visa, Mastercard, and American Express use 3DS under different names, such as Visa Secure and Mastercard Identity Check.

• Challenge Flow: In this process, the cardholder is required to provide additional information to verify their identity, like entering a one-time password (OTP) or answering a security question. This typically happens when the transaction is flagged as higher risk.
• Frictionless Flow: In this scenario, the cardholder is not required to provide extra information. The transaction is automatically approved based on pre-verified data, making it quicker and smoother for the customer.

A 3DS Server is a service that acquirers (banks or financial institutions that process payments) and merchants use to implement the 3D Secure protocol. It handles the communication between the merchant, the cardholder, and the card issuer during the transaction process, ensuring that the transaction is secure and meets compliance requirements.

Risk-Based Authentication (RBA) is a method used in 3D Secure to evaluate the risk of a transaction before deciding whether to prompt the cardholder for additional verification (Challenge Flow) or allow it to proceed without interruption (Frictionless Flow). Factors like transaction amount, location, and device used can influence the risk assessment.

PCI-DSS (Payment Card Industry Data Security Standard) compliance is required for any business that handles, processes, or stores credit card information. This includes merchants, payment processors, and any third-party service providers that work with payment data.

3DS SERVER offers two main deployment options for 3D Secure:

• On-Premise: The 3DS solution is installed and managed on the company’s own servers, giving full control over the environment.

• Cloud Service: The 3DS solution is hosted and managed by 3DS SERVER, providing scalability and reducing the need for in-house infrastructure management.

3DS SERVER supports 3-D Secure implementations for all major card schemes, including Visa, Mastercard, American Express, JCB, and Discover. This ensures that merchants can offer secure transactions across different card brands.

Implementing 3-D Secure with 3DS SERVER is designed to be straightforward. 3DS SERVER provides comprehensive APIs, documentation, and support to help businesses integrate the 3DS solution into their existing payment systems with minimal disruption.

If you choose not to use 3-D Secure, your business may be more vulnerable to fraud and chargebacks. Additionally, some regions or card networks might impose penalties or require liability shifts, meaning that your business could be held responsible for fraudulent transactions instead of the card issuer.

• 3DS 1.0: The original version, which primarily used static passwords and offered a less smooth customer experience.
• 3-D Secure 2.1: Introduced improvements like Risk-Based Authentication and better support for mobile devices.
• 3-D Secure 2.2: The latest version, offering even more features, such as exemption handling and better support for digital wallets, further enhancing both security and user experience.

An Access Control Server (ACS) is a component used by card issuers (banks) to handle the authentication process during a 3D Secure transaction. The ACS verifies the cardholder’s identity and communicates the result back to the 3DS Server, determining whether the transaction should proceed.

PCI-3DS compliance is required for any entity involved in the 3D Secure authentication process, including 3DS Servers, Access Control Servers, and any other parties that store, process, or transmit cardholder authentication data.

The choice between On-Premise and Cloud Service depends on your business needs:

• On-Premise: Offers more control and customization but requires significant investment in infrastructure and IT management.
• Cloud Service: Easier to scale, less costly upfront, and allows you to focus on your core business without worrying about maintaining the infrastructure.

To enroll in the 3-D Secure program for different card schemes, you typically need to work with your acquiring bank or payment processor. They will guide you through the enrollment process, which may include providing business details, technical integration, and undergoing testing to ensure your systems meet the card scheme’s requirements.