What Is 3-D Secure?

Each card scheme has its own service that implements the EMV 3DS protocol. For example, Visa has “VISA Secure”, Mastercard has “Mastercard Identity Check”, and American Express “SafeKey”. As of today there is one relevant version in the markets, which is 3-D Secure 2 (3DS2). This version is designed to address the shortcomings of the original EMV 3DS protocol (3DS1) and to improve the user experience for cardholders and merchants. The benefits of 3DS2 include:

Regulatory compliance: 3DS2 is designed to meet the requirements of the Payment Services Directive 2 (PSD2) in Europe and the Strong Customer Authentication (SCA) requirements.
Acceptance rates: 3DS2 is designed to reduce friction in the checkout process and improve the user experience, which can lead to higher conversion rates.
Enhanced trust: 3DS2 provides additional data points that can be used to authenticate the cardholder, which can help reduce fraud and build trust with customers.
Liability shift: 3DS2 supports the liability shift for transactions that are authenticated using the protocol, which can help protect merchants from fraud-related chargebacks.

Commerce provides a simple, convenient, and secure way to integrate 3DS2 into your payment flows. Our services are designed to make it easy to authenticate cardholders and reduce fraud across all your acquirers, while still providing a seamless user experience for your customers. One of the key aspects why 3DS2 is so convenient is that it is designed to work based on data collected from the merchant, the customer and the device. This allows the card issuer to selectively challenge transactions based on the risk profile of the transaction. This means that in many cases the cardholder will not be challenged at all, which can help reduce friction in the checkout process and improve the user experience.

Challenge flows

In case the card issuer decides to challenge the transaction, the cardholder will be redirected to the card issuer’s authentication page to complete the challenge. The challenges typically include entering a one-time password (OTP) or accepting a push notification on their mobile device. This process effectively implements a two-factor authentication (2FA) mechanism to verify the cardholder’s identity.

Frictionless flows

In some cases, the card issuer may be able to authenticate the cardholder without requiring any action on their part. This is known as a “frictionless flow” and is designed to provide a seamless user experience for the cardholder. The card issuer may use data collected from the merchant, the customer, and the device to authenticate the cardholder without requiring any additional input.

Authentication results

At the end of the 3DS2 authentication a so-called electronic commerce indicator (ECI) is returned. This ECI indicates the result of the authentication and can be used by the merchant to determine the next steps in the payment flow. The ECI can have different values, such as “authenticated”, “attempted”, or “not authenticated”, depending on the outcome of the authentication.

VISA, American Express, and others
Mastercard

ECI Value	Description	Liability Shift
05	Cardholder authentication was successfully completed.	Yes
06	Authentication was attempted but was not available at the issuer’s end.	Sometimes
07	Authentication was rejected or could not be attempted.	No

ECI Value	Description	Liability Shift
00	Authentication was rejected or could not be attempted.	No
01	Authentication was attempted but was not available at the issuer’s end.	Sometimes
02	Cardholder authentication was successfully completed.	Yes

Exemptions (PSD2 / SCA)

Specific transactions may be exempt from the 3DS2 authentication process. These exemptions are designed to reduce friction and improve the user experience for cardholders.

Exemption Type	Conditions	Limits/Notes
Low-Value Transactions	Amount ≤ €30	Max 5 consecutive transactions or cumulative total ≤ €100 before SCA is triggered
Recurring Transactions	Same amount and same payee	SCA required only for the first transaction
Trusted Beneficiaries	Payee added to whitelist maintained by customer’s bank	Future payments to that payee can be exempt from SCA
Corporate Payments	Uses secure, dedicated corporate processes not available to the general public	Must meet security requirements equivalent to SCA
Transaction Risk Analysis (TRA)	Low fraud risk assessed by PSP based on transaction data	Value limits depend on PSP’s fraud rate: ≤€500/€250/€100 based on thresholds
Secure Corporate Processes	Applies to large-scale, internal payment systems	Must be isolated from consumer payment channels

Additionally specific transaction types are excluded:

Transaction Type	Description	Reason for Exclusion
MOTO (Mail Order / Telephone Order)	Payments made via phone or mail, not electronically initiated by the payer	Not considered electronic payment initiation
Anonymous Prepaid Cards	Gift cards or prepaid cards with no identifiable customer	Payer identity cannot be authenticated
Merchant-Initiated Transactions (MIT)	Transactions initiated by the merchant without payer’s active involvement	Not triggered by the customer at the time of payment
Direct Debits (e.g., SEPA)	Mandate-authorized debits, not initiated by the customer at each occurrence	No real-time action from the payer
Inter-PSP Transfers	Transfers initiated by a payment service provider or bank on behalf of the user	Not customer-initiated
One-leg-out Transactions	Where either the payer’s or payee’s PSP is outside the EEA	PSD2 applies only partially outside the EEA

Getting Started

Payments

Tokens

Authentications

Wallets

Challenge flows

Frictionless flows

Authentication results

Exemptions (PSD2 / SCA)

​Challenge flows

​Frictionless flows

​Authentication results

​Exemptions (PSD2 / SCA)

Challenge flows

Frictionless flows

Authentication results

Exemptions (PSD2 / SCA)