3D Secure (3DS) is a customer authentication solution used to prevent fraud during card-not-present transactions. 3DS stands for 3 Domain Server because it operates in a three domain model:

• Acquirer domain: The environment of the merchant and acquirer that receives the payment
• Issuer domain: The environment of the issuing bank that funds the payment
• Interoperability domain: The system that supports the 3DS technology and allows the parties to transact

In short, 3DS is a technology implementation that adds an additional step in the checkout process by asking customers to provide a password, SMS code, or temporary PIN before authentication. It provides maximum security by digitally confirming the identity of all three parties.

In some markets, 3DS is an optional, additional security protocol you can add to your payments stack; in others—such as the European Union—it's a regulatory obligation all businesses must comply with.

How 3DS Can Impact Your Business

Processing transactions with 3DS provides your business with increased security, thus reducing instances of fraud and chargebacks and saving your business money. However, the additional time customers spend at checkout is associated with an increased rate of card abandonment and lower turnover. Not only that, but the inherent friction of 3DS verification can cause customer experience problems—such as longer queues and more complications—which may translate to increased customer service expenses for your business.

Observing 3DS Trends In Your Data with Pagos

In the Charts section of Pagos Visualizations, you can create custom charts demonstrating your payments data in different ways. Depending on the Metric you want to observe, you can view your data broken down by the following relevant dimensions:

• 3DS Authentication Result
• 3D Secure Code
• 3D Secure Version