What is 3DS Authentication?

Ever wondered what happens when you enter your card details online and receive a verification one-time PIN (OTP) or a prompt to verify with biometrics? That's 3DS Authentication in action.

3DS stands for "Three Domain Security," meaning it involves three key parties working together: the merchant's bank, the customer's bank, and the payment networks (like VISA or Mastercard). These entities communicate securely to authenticate the transaction, ensuring that only the rightful cardholder can complete the purchase.

In simple terms: For a bad actor to falsify a 3DS authentication, they would need to breach the merchant's bank, the customer's bank, and the payment network (like Visa or Mastercard) — all at the same time. This level of coordination and precision is practically impossible, making 3DS authentication one of the most secure payment verification methods available.

Lower Transaction Fees & Reduced Chargebacks with 3DS

The primary objective of 3DS Authentication is to ensure that the person making a payment is the rightful owner of the payment information. This process significantly reduces fraudulent transactions and, in turn, chargebacks. Here's why:

For an OTP or biometrically-authorized 3DS transaction to be approved, the legitimate cardholder must verify the purchase directly with their bank. This verification shifts the liability from the merchant's bank and payment gateway to the issuing bank. As a result, merchants benefit from lower transaction fees and fewer chargeback-related costs.

Meet Compliance with Industry Security Standards

3DS is a widely adopted security protocol required by most banks in South Africa. Major payment networks like Visa, Mastercard, and Amex mandate its use to enhance transaction security. By implementing 3DS, your store aligns with South Africa's banking regulations and payment security standards, reducing the risk of non-compliance, fines, or reputational damage.

Increase Conversions for New Customers

Customers feel safer when they see familiar security measures like OTPs or biometric prompts during checkout. This reassurance builds trust in your store's security, making them more likely to purchase from your store and encourages repeat purchases.

Support Frictionless Flow for Returning Customers

3DS also enables a "frictionless flow," allowing low-risk transactions to be automatically approved without customer interaction. This results in a smoother, faster checkout experience for trusted customers. Low-risk transactions are determined by factors such as the customer's past purchasing behavior, the device being used, the merchant's chargeback history, and the transaction's value and frequency.

If you're enjoying QwicPay's features, keep reading about our Email Tokenization feature (included as part of our service offering) which boosts customers' trust in your store.