3D Secure is a security protocol used in online transactions to add an additional layer of protection against unauthorized use of credit and debit cards. It is often referred to as "3D Secure" or "3DS" for short. When a cardholder makes an online purchase, 3D Secure requires them to verify their identity through an additional step, typically by entering a one-time password (OTP) or providing other authentication credentials.
3D Secure is designed to reduce the risk of fraudulent transactions by adding an extra layer of security. It helps protect both cardholders and merchants from unauthorized use of credit and debit cards for online transactions. The protocol is used by major card networks, such as Visa, Mastercard, and American Express, and is widely implemented by online merchants as a security measure for card-not-present transactions.
The way 3D Secure works may vary slightly depending on the card network and the issuing bank, but generally, when a cardholder initiates an online transaction, they may be redirected to a page hosted by their bank to complete the 3D Secure authentication process. This may involve entering a one-time password sent to their registered mobile number or email, or providing other authentication information known only to the cardholder.