3D-Secure with Payyo

3D Secure is a security protocol that helps to prevent fraud in online credit and debit card transactions

    Last update [Feb 24, 2023]

    Here's an overview of what we cover in this article:



    What is 3D-Secure?

    3D-Secure was designed to enhance security by requiring greater authentication when using debit or credit cards for online purchases. The name varies depending on the card type, “MasterCard SecureCode”, “Verified by Visa” and, in the case of American Express cards, “Safekey”.

    With 3D-Secure, after a customer has entered their card information, he or she is asked to enter a password that helps the card issuer identify the cardholder.

    The additional level of authentication is currently applied to all European issued cards.



    Payyo and 3D-Secure

    Payyo users can now choose to activate 3D-Secure.

    Only transactions using cards that are issued in Europe are affected. Payments, where the issuer (Cardholder's bank) or the acquirer (merchant's bank) are not based in Europe, are considered exempt.


    Transactions under 30 EUR will be exempt from 3D-Secure. However, the issuing bank will keep track of the number of payments made. 

    If the total amount attempted on the card without strong authentification per 24 hours is higher than 100 EUR, or every 5 transactions, 3D-Secure will be required.

    Low-risk transactions are also exempt from 3D-Secure. The ability for a payment to be considered low-risk is based on the average fraud levels of the card issuer and acquirer (merchant's bank) processing the transaction.



    Advantages of 3D-Secure

    3D-Secure reduces the risk of fraudulent transactions and decreases the number of disputed transactions. It boosts customers’ confidence and helps you establish greater trust with customers when booking with you.

    When a transaction is completed with 3D-Secure, it is the card's issuing bank that assumes the risk, not you, the merchant. More importantly, chargebacks are not permitted if you, the merchant, complied with the acquirer’s legal requirements (i.e. 3D-Secure was activated; the payer was redirected to a website where card authentication took place; the authentication process was successful).



    Disadvantages of 3D-Secure

    While using 3D-Secure is recommended, the additional steps your customers have to take to make a payment can be inconvenient. At the end of the day, you have to decide if this extra step will benefit your business.

    Before making a decision, consider how much you stand to gain from not permitting chargebacks, how much of your business you protect by deterring fraud, and how much sales you might lose from this added step.



    How can it be enforced to customers

    This identity verification can vary from bank to bank but mostly will be based on those 3 ways of validation:

    • Something that you know such as a password or PIN number.
    • Something that you have such as a mobile phone, card reader or any other device evidenced by single use passcode.
    • Something you are such as fingerprint scanner or any other way to identify yourself with a device.


    For more details on SCA (Strong customer authentication), check out Payyo help article here