3D Secure 2.0 (3DS2) is a tool to detect and prevent fraud during card-not-present transactions by verifying a cardholder’s identity. The solution collects contextual information during checkout — such as device data, purchase history, IP address, etc. — to help the card issuer assess risk. If the information provided doesn’t authenticate the cardholder, the issuer may request additional verification, such as a biometric check or one-time passcode.
3DS2 supports mobile-first and app-based commerce, offering a faster and more flexible checkout experience than the original 3D Secure. It also helps merchants comply with Strong Customer Authentication (SCA) requirements in the European Economic Area.
For merchants processing digital payments, 3DS2 offers a way to reduce unauthorized transactions without interrupting legitimate purchases. It’s particularly useful in industries with high fraud exposure or for businesses expanding into regions where SCA is required. A properly implemented 3DS2 flow can help you maintain approval rates and minimize the operational burden of managing disputes. AltoPay’s infrastructure supports 3DS2 to help ensure those protections are in place when and where they matter most.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
