The 3D Secure authentication is an additional fraud prevention scheme that is available to all companies using the HIPS systems to process transactions.
Its a way for the card-issuer to authenticate the cardholder before an internet transaction occurs. A PIN code or equal for any online purchases.
Typical 3D Secure transaction flow:
The cardholder enters card detail in the shop
The shop run the Payment API and create a payment request.
HIPS check if the card is enrolled in 3D Secure
The Payment API returns a preflight status that is require_3ds.
The merchant redirect the cardholder to redirect_user_to_url
The user comes back to the hooks ➔ user_return_url_on_success after a successful 3d secure authentication.
The merchant run View Payment API to see if payment status is authorized, successful or failed.
Based on the result from the payment view the order is dispatched from the merchant.
What are the benefits of using 3D Secure?
Liability Shift : The main benefit to companies using the 3D Secure scheme is the availability of a liability shift for a successfully verified transaction. This offers protection by the card issuers against chargebacks as the liability is assumed.
No extra cost : There are no extra costs to add 3D Secure onto your HIPS account.
Easy to set up and control : For HIPS checkout, 3D secure is controlled and handled automatically by HIPS. For the Payment API, Hips uses a preflight to check if a card is enrolled before the actual authentication occurs. It’s very easy to setup, just follow this documentation.
Are there any limitations of using this?
Cardholder must be redirected outside the shop : The cardholder must be redirected to the issuing bank for authentication. However he/she will come back to your store to a predefined url once the authentication is complete.
Chargebacks can still occur : Fully authenticated 3D Secure transactions do not guarantee a liability shift, this is decided at the discretion of your merchant bank. The majority of frauds, however, will be blocked using 3D secure.
Updated about 4 years ago