3-D secure is a protocol designed to improve the security of online payment transactions. It was developed to provide an additional layer of authentication for cardholder payments, so that consumers can make secure payments directly from their bank or credit card issuer. With this specialized protocol, merchants can now be sure that they are dealing with the legitimate cardholder, which reduces the risk of fraudulent transactions and losses resulting from them.
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Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 Annual U.S. Debit Market Data Review
Can you name the three domains in “3-D Secure”?
- Issuer Domain, where transactions are authorized
- Acquirer Domain, where 3-D Secure transaction begin
- Interoperability Domain, the infrastructure that switches transactions between Issuers and Acquirers
- 3-D Secure V2 is a risk-based authentication which enables issuers to receive 10 times more data
- Information fields such as email, billing & shipping address, device ID, & biometric data
- There is a ‘Data Only’ version of 3-D Secure introduced by Mastercard sending just risk score and reason code ..but Data Only 3-D Secure does not shift liability to the issuer, making it a stop-gap rather than a permanent solution
About the Report
Debit cards turned in another year of very solid transaction growth in the U.S., albeit not quite as robust as the previous year, which may be reflective of an underlying weakening of consumer confidence. However, some new trends are likely to have a positive influence on the market, according to the report.
Mercator Advisory Group has released new research on the U.S. debit cards in the 2019 Annual U.S. Debit Market Data Review. Mercator Advisory Group’s fourth annual review of the market dynamics in the U.S. debit industry focuses on trends and events impacting the industry.
“This report is the fourth annual debit data review compiled by Mercator Advisory Group and new trends continue to influence this very mature payments product,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report. “The most influential events include the anticipated consolidation of EFT debit networks as their large processor owners propose to merge, the beginning of contactless debit card issuance, the growing influence of debit push payments on network transactions and approaches to battle card-not-present fraud.”
This report has 21 pages and 15 exhibits.
Companies mentioned in this report include: Bank of America, BB&T, Chase Bank, Discover, EMVCo, First Data, Fifth Third Bank, FIS, Fiserv, HSBC, Key Bank, M&T Bank, Mastercard, PayPal, Santander, Shazam, Square, Starbucks, TD Bank, Visa, Wells Fargo Bank, and Worldpay.