Visa Preparing for Beefed-up Fraud Prevention via 3-D Secure 2.0

The next generation of 3-D Secure (3DS) payment authentication is on the horizon, promising even stronger fraud prevention for ecommerce transactions. Visa shared some news last week about its plans for supporting the rollout of 3DS 2.0. Here’s a summary:

  • Early adoption of 3-D Secure (3DS) 2.0 is expected to begin in the latter half of this year.
  • However, current rules governing Visa 3DS transactions will not extend to transactions attempted under version 2.0 until April 12, 2019.
  • In the meantime, Visa will partner with various stakeholders to deploy 3DS 2.0 pilot programs. If you are interested in becoming an early adopter, consult EMVCo for testing and approval procedures.
  • Visa advises early-adopting merchants to continue supporting 3DS 1.0 in parallel, since there is no backwards compatibility. Transactions with issuing banks that do not yet support 2.0 will not extend fraud-related chargeback protection to the merchant, unless the issuing bank is unavailable and Visa stands in.

SegPay introduced 3DS for our merchants last year and, in addition to the chargeback protection, merchants on 3DS have saved between 2-7% of sales that otherwise may have been declined for fraud. We will be introducing our own 3DS updates by the end of this year, including early support for 2.0, and will keep you updated as news develops.

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