3D Secure
3D Secure (3DS) is a security protocol that requires additional authentication of the cardholder during online card payments. The current version, 3D Secure 2 (3DS2), enables risk-based authentication: for low-risk transactions, approval takes place in the background, while for higher-risk transactions, you are prompted to confirm the payment via app, SMS code or biometrics.
The brand names for 3D Secure are Visa Secure (formerly Verified by Visa) and Mastercard Identity Check (formerly SecureCode). In the EU, 3D Secure is mandatory for most online card payments under Strong Customer Authentication (SCA) according to PSD2. Switzerland has no direct PSD2 obligation, but most Swiss issuers use 3DS2 as standard.
For merchants, 3D Secure has an important advantage: in the case of an authenticated transaction, the liability for chargebacks (liability shift) shifts from you to the issuer.
3D Secure examples
A customer pays online with Visa. The system detects an increased risk and requests confirmation via banking app.
A regular customer pays at her favourite shop. 3DS2 recognises the low risk and lets the payment through without additional authentication (frictionless flow).
A merchant activates 3D Secure and benefits from the liability shift: in the event of a fraudulent chargeback, the issuer is liable, not the merchant.
3D Secure FAQ
What is 3D Secure?
3D Secure is a security protocol for online card payments that requires additional authentication of the cardholder. The current version, 3DS2, enables a risk-based check — often without any noticeable interruption for the buyer.
Is 3D Secure mandatory in Switzerland?
Switzerland is not directly bound by the PSD2 directive, but most Swiss banks and card networks use 3D Secure 2 by default. For you as a merchant, activation is recommended because it enables the liability shift.
What is the liability shift with 3D Secure?
With a 3D Secure-authenticated transaction, the liability for fraudulent chargebacks shifts from the merchant to the issuer. This significantly reduces your financial risk as a merchant.
Does 3D Secure lower your conversion rate?
3DS2 minimises the impact on conversion because many transactions are authenticated in the background (frictionless flow). Active confirmation is only requested in the event of an increased risk.
