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BalenciagaAlex
Carding Novice
- Joined
- 29.07.24
- Messages
- 5
- Reaction score
- 10
- Points
- 3
2D Gateways↴
2D secure gateways are less secure compared to 3D secure gateways, and they involve a straightforward transaction process.
The customer enters their card details on the merchant's website (card number, expiration date, CVV).
Authorization Request:
The payment gateway sends an authorization request to the acquiring bank.
Authentication:
The acquiring bank verifies the card details and checks for available funds.
Authorization Response:
The acquiring bank sends an authorization response back to the gateway, which in turn informs the merchant of the transaction status.
Completion:
If approved, the transaction is completed, and the funds are reserved. The settlement usually happens later.
The process is straightforward, with minimal steps.
Speed:
Transactions are typically quicker due to fewer steps.
Security Level:
Lower security as it relies mainly on the card details without additional customer verification steps.
User Experience:
More seamless for the user as it doesn't require additional steps for authentication.
The customer enters their card details on the merchant's website.
Redirection to Issuer:
The payment gateway redirects the customer to the card issuer’s authentication page.
Authentication:
The customer is prompted to verify their identity using a password, SMS code, biometric, or other authentication methods.
Authorization Request:
Once authenticated, the issuer sends an authorization request to the acquiring bank.
Authorization Response:
The acquiring bank responds back to the issuer, which then forwards the response to the payment gateway.
Completion:
If approved, the transaction is completed, and the funds are reserved.
The additional authentication step significantly reduces the risk of fraudulent transactions.
Compliance:
Meets regulatory requirements such as PSD2 in Europe which mandates strong customer authentication.
User Experience:
Slightly more cumbersome as it requires the customer to complete additional steps.
Liability Shift:
With 3D Secure, the liability for fraudulent chargebacks shifts from the merchant to the card issuer, reducing the merchant's risk.
Key Differences Between 2D and 3D Secure Gatewa
Types of 3D Secure Gateways
3D Secure has evolved to enhance security and user experience. The different versions offer improvements in various areas:
QUOTE : 3D SECURE 1.0
Launched: Early 2000s
Process: Redirection to an authentication page hosted by the issuer.
User Experience: Often cumbersome, as it requires a separate pop-up or iframe.
Security: Basic authentication, usually a static password.
Adoption: Widely adopted but criticized for poor user experience and high cart abandonment rates.
QUOTE : 3D SECURE 2.0
Launched: 2016
Process: Seamless integration with the merchant's checkout page, reducing friction.
User Experience: Improved through device authentication and risk-based authentication, often without user interaction for low-risk transactions.
Security: Enhanced through dynamic authentication methods.
Adoption: Increasingly adopted due to improved user experience and better fraud prevention.
QUOTE : 3D SECURE 2.1
Enhancements: Introduced streamlined authentication flows and better support for mobile devices.
User Experience: Improved through frictionless flow for low-risk transactions and better support for biometric authentication.
Security: Continued focus on dynamic authentication and risk-based decisions.
QUOTE : 3D SECURE 2.2
Enhancements: Added support for additional data elements to improve risk assessment and authentication decisions.
User Experience: Further reduced friction by allowing merchants to send more contextual information, leading to fewer interruptions.
Security: Enhanced data exchange between merchants and issuers to improve fraud detection.
QUOTE : 3D SECURE 2.3
Enhancements: Introduced greater support for non-payment authentication use cases and delegated authentication, allowing trusted third parties to perform authentication.
User Experience: Further streamlined, particularly for recurring payments and subscriptions.
Security: Continued improvements in authentication accuracy and user verification.
QUOTE : 3D SECURE 2.3.1
Enhancements: Focus on fine-tuning the protocol to address implementation feedback and improve real-world performance.
User Experience: Optimized for even smoother integration and minimal user disruption.
Security: Minor tweaks to enhance security measures and data handling practices.
Payment Types in Practice
2D secure gateways are less secure compared to 3D secure gateways, and they involve a straightforward transaction process.
Card Information Entry:
The customer enters their card details on the merchant's website (card number, expiration date, CVV).
Authorization Request:
The payment gateway sends an authorization request to the acquiring bank.
Authentication:
The acquiring bank verifies the card details and checks for available funds.
Authorization Response:
The acquiring bank sends an authorization response back to the gateway, which in turn informs the merchant of the transaction status.
Completion:
If approved, the transaction is completed, and the funds are reserved. The settlement usually happens later.
Simplicity:
The process is straightforward, with minimal steps.
Speed:
Transactions are typically quicker due to fewer steps.
Security Level:
Lower security as it relies mainly on the card details without additional customer verification steps.
User Experience:
More seamless for the user as it doesn't require additional steps for authentication.
3D Gateways↴
3D secure gateways add an extra layer of security by involving an additional authentication step for the cardholder.Card Information Entry:
The customer enters their card details on the merchant's website.
Redirection to Issuer:
The payment gateway redirects the customer to the card issuer’s authentication page.
Authentication:
The customer is prompted to verify their identity using a password, SMS code, biometric, or other authentication methods.
Authorization Request:
Once authenticated, the issuer sends an authorization request to the acquiring bank.
Authorization Response:
The acquiring bank responds back to the issuer, which then forwards the response to the payment gateway.
Completion:
If approved, the transaction is completed, and the funds are reserved.
Enhanced Security:
The additional authentication step significantly reduces the risk of fraudulent transactions.
Compliance:
Meets regulatory requirements such as PSD2 in Europe which mandates strong customer authentication.
User Experience:
Slightly more cumbersome as it requires the customer to complete additional steps.
Liability Shift:
With 3D Secure, the liability for fraudulent chargebacks shifts from the merchant to the card issuer, reducing the merchant's risk.
Key Differences Between 2D and 3D Secure Gatewa
- Security: 3D Secure is more secure due to the extra authentication step, whereas 2D Secure relies solely on card details.
- Fraud Protection: 3D Secure offers better protection against fraud and a liability shift for the merchant.
- Customer Experience: 2D Secure provides a quicker, simpler checkout experience, while 3D Secure adds an additional step, potentially causing friction.
- Regulatory Compliance: 3D Secure often complies with more stringent security regulations compared to 2D Secure.
Types of 3D Secure Gateways
3D Secure has evolved to enhance security and user experience. The different versions offer improvements in various areas:
QUOTE : 3D SECURE 1.0
Launched: Early 2000s
Process: Redirection to an authentication page hosted by the issuer.
User Experience: Often cumbersome, as it requires a separate pop-up or iframe.
Security: Basic authentication, usually a static password.
Adoption: Widely adopted but criticized for poor user experience and high cart abandonment rates.
QUOTE : 3D SECURE 2.0
Launched: 2016
Process: Seamless integration with the merchant's checkout page, reducing friction.
User Experience: Improved through device authentication and risk-based authentication, often without user interaction for low-risk transactions.
Security: Enhanced through dynamic authentication methods.
Adoption: Increasingly adopted due to improved user experience and better fraud prevention.
QUOTE : 3D SECURE 2.1
Enhancements: Introduced streamlined authentication flows and better support for mobile devices.
User Experience: Improved through frictionless flow for low-risk transactions and better support for biometric authentication.
Security: Continued focus on dynamic authentication and risk-based decisions.
QUOTE : 3D SECURE 2.2
Enhancements: Added support for additional data elements to improve risk assessment and authentication decisions.
User Experience: Further reduced friction by allowing merchants to send more contextual information, leading to fewer interruptions.
Security: Enhanced data exchange between merchants and issuers to improve fraud detection.
QUOTE : 3D SECURE 2.3
Enhancements: Introduced greater support for non-payment authentication use cases and delegated authentication, allowing trusted third parties to perform authentication.
User Experience: Further streamlined, particularly for recurring payments and subscriptions.
Security: Continued improvements in authentication accuracy and user verification.
QUOTE : 3D SECURE 2.3.1
Enhancements: Focus on fine-tuning the protocol to address implementation feedback and improve real-world performance.
User Experience: Optimized for even smoother integration and minimal user disruption.
Security: Minor tweaks to enhance security measures and data handling practices.
Payment Types in Practice
- Credit Card Payments:
- Debit Card Payments: Similarly, both gateways handle debit card transactions, with 3D Secure offering added protection.
- Recurring Payments: These can be processed through 2D gateways for simplicity, but initial setup might use 3D Secure for verifying customer identity. Newer 3D Secure versions (like 2.3) are particularly optimized for this use case.
- Mobile Payments: Mobile transactions can leverage either 2D or 3D Secure, but mobile wallets often incorporate the latest versions of 3D Secure for added security and seamless user experience.
In summary, the choice between 2D and 3D Secure gateways depends on the merchant's need for security versus simplicity and the regulatory environment in which they operate. The various versions of 3D Secure offer a balance between security and user experience, with the latest versions providing the most optimized solutions for reducing fraud and improving transaction completion rates.
