The EMVCo team released a new version of the 3D Secure protocol, called EMV 3-D Secure (3D Secure v2), using Stripe, an online software platform that handles, builds and runs flexible tools for Internet commerce, around the world, earlier this week. 3D Secure v2 works on overcoming the shortcomings of 3D Secure v1. It explores features such as frictionless authentication and better user experience.
Let’s have a look at these features.
3D Secure v2 is used by businesses and their payment providers to securely send over 100 data elements on every transaction to the cardholder’s bank. This includes data related to payments such as the shipping address, as well as contextual data, such as the customer’s device ID or previous transaction history. The cardholder’s bank then uses this information to analyze the risk level of the transaction and further selects an appropriate response.
If the bank trusts the data provided by the cardholder during the payment phase, then it follows the “frictionless” flow and the cardholder doesn’t see any sign of 3D Secure being applied. If the bank decided on getting further proof, then the transaction follows the “challenge” flow where the customer is asked to provide additional input to make sure the payment is authentic.
Better User Experience
3D Secure v2 comes with new mobile SDKs using which businesses can implement native flows within their apps. Moreover, this doesn’t require customers to switch to a browser-based flow for completing the transaction.
These new mobile SDKs further make it easy for the customers to authenticate a payment using their mobile banking apps. This SDK also detects whether the bank’s app is installed on the customer’s device and then automatically opens the banking app during the 3D Secure flow without requiring any customer interaction. The customer can then authenticate the payment with the help of a password, fingerprint, or facial recognition.
EMVco is expecting the first banks to support the 3D Secure v2 for their cardholders in early 2019. The wider implementation of 3D Secure v2 among banks will be incremental and would take several months.
“We’re keen to support 3D Secure v2 for businesses using Stripe as soon as possible, so we’re preparing the Stripe APIs to take full advantage of the 3D Secure v2 improvements”, reads the announcement page.
For more information, check out the official announcement.