3-D Secure is an authenticated payment system to improve online transaction security and encourage the growth of e-commerce payments. Collectively Visa, MasterCard and AMEX secure systems are brand identities of the 3-D Secure Cardholder Authentication Scheme.
It allows card owners to create and assign a password to their card that is then verified whenever a transaction is processed through a site that supports the use of the scheme. The addition of password protection allows extra security on transactions that are processed online.
3D Secure stands for 3 Domain Server, there are 3 parties that are involved in the 3D Secure process:
- The company the purchase is being made from.
- The Acquiring Bank (the bank of the company).
- VISA and MasterCard (the card issuers themselves).
3-D Secure systems recreate the high level of security of a physical payment environment by requesting further payment authentication. The objective is to provide a safe and secure online payment experience across all three domains using a password that is validated by the card issuer and further checked by all other parties involved in the transaction.