3D Secure Payment Gateways for high-risk businesses

Why You Should Use 3D Secure If You Operate a High Risk Business

Some experts estimate that there is $125 billion in chargebacks that are affecting companies.

However, one way that you can reduce that is by using 3D Secure. 3D Secure (3DS) is a great way to protect high-risk businesses, especially if you’re charging a lot of money at once.

Keep reading to learn all about 3D Secure and how it can help your business.

Speak With An Expert Today!
Fill out this form and a merchant services representative will be in touch!

Get in touch: (877)-511-3402

What Is 3D Secure?

3DS is a security technology that works kind of like a PIN code does for any online purchases. Businesses use 3DS to authenticate purchases for authorized cardholders. This layer of security helps protect merchants and cardholders from any bad transactions.

This is a customer authentication protocol that was created specifically for eCommerce . The system validates buyers at the checkout, and many card networks recommend that merchants start using this.

Each card brand has its own version of 3DS programs. If you don’t want to set one up yourself, you can have someone else set it up for you. There are many third-party providers that can help you implement this security into your management plan.

How Does It Work?

This is a secure system that operates on a 3D model. This provides secure authentication between an online authorization process and the financial authorization process.

The first domain in this system is the Acquirer Domain. This helps the bank and the merchant who receives the transaction payment. The second domain is the Issuer Domain.

This is the bank that issued the credit or debit card used for the transaction. The third domain is the Interoperability Domain. This is in the infrastructure provided for the card. This third domain is what supports the secure protocol.

The 3DS uses SSL communications and XML messaging. Both of these have authentication and secure transactions, and you can use them in many different ways.

So when a customer checks out online, they’ll have to enter their SecureCode that is provided by their card issuer. When they enter the code, the customer will be directed to the issuer’s website in order to authorize the payment.

Depending on which solution you want, sometimes the authorization can be completed in the payment solution without needing to go to another site.

However, keep in mind that 3DS may not be supported for American Express, Discover Card, or any gift cards. The merchant can require what cards need to enter the authentication.

You can choose to have high-risk purchases do this authorization, or you can opt for certain car users to go through the process.

PCI Compliance is important with 3D Secure Payment Gateways

Benefits of 3D Secure

There are many benefits of using a 3D secure system that will protect both the merchant and the users. This can also save you money and shift liability away from your business.

Save Money

When you have a secure way for people to pay with their cards, then you can save money. You’ll have fewer chargebacks, which also means that you’ll have more money in your business account.

You’ll also save time and money on resources for disputing claims, paying fees, and paying any penalties. However, you could lower your conversion rate.

In general, if a checkout process is very lengthy, the customer might abandon the cart and decide not to make a sale. If you add another authentication step, this can hurt your overall shopping experience.


The payment liability is another benefit of using this type of merchant. When you complete this extra authentication step, the bank then becomes liable for any fake chargebacks.

Even when a customer says that they have an unauthorized payment on their card, the card provider will have to manage the refund.

The merchants also benefit from not being liable anymore. There is even 3DS 2.0 that has different coverage as well. However, you’re only covered if the authentication is successful and if an actual fraud-based chargeback is filed.


3DS version 1 was not compatible when people purchased things on their mobile devices. However, 3D secure 2.0 lets merchants integrate this protocol into mobile apps.

You can use this application on browsers as well, for mobile or desktops. Consumers can even use credit cards that are in some of the in-app or digital wallets.

3DS 2 also allows non-payment authentication options. This will let you validate the cardholder without having them actually purchase something.

How to Set Up a 3D Secure Payment System

If you want to use any of these benefits, you’ll need to set up this 3DS. You can either set it up yourself or use another company to set it up for you.

If you have someone set up the account for you, they’ll set up a merchant account. This will be separate from a business bank account, but it’ll be an area where all the payment funds will be held and processed.

There, you can access them and transfer them to your business bank, knowing that all of those payments were valid and legitimate.

This company will also add a layer of security to your payment methods. They’ll also ensure that you meet all of the PCI-compliant measures . This will ensure that you’re processing, transmitting, and storing customer data in the right way.

Learn More About Why You Should Use 3D Secure

These are only a few reasons that you should use 3DS, but there are many other benefits of using this type of system.

We know that running your business can be stressful and overwhelming, so let us take care of this aspect of your business for you!

Check out our services to have us implement 3DS into your business today!

Table of Contents

  • - What Is 3D Secure?
  • - How Does It Work?
  • - Benefits of 3D Secure
  • Save Money
Zen Logo
Feel free to reach out to us with questions or for general support, available 24 hours, 7 days a week!
email iconsales@zenpayments.comphone icon(877)-511-3402Partner Login
BBB logoGoogle logoeta logoAPP logo
© 2024 Zen Payments | All rights reserved
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service  apply.