EMV 3-D Secure 2.2.0 – More Security, Profitability, and a Better User Experience

Today’s payment ecosystem requires a more robust and efficient cardholder authentication protocol, enhancing the digital experience while reducing fraud, friction, and false declines. EMV 3-D Secure 2.2.0 meets these needs.

The Growth of Digital Payments

In just the first quarter of 2022, Brazilians transacted BRL 162.4 billion in the e-commerce market, a 35.2% increase compared to the same period the previous year.

As digital payments evolve to meet consumer demands, fraud prevention technologies also advance to ensure secure transactions.

The Evolution of the EMV 3-D Secure Protocol: 1.0, 2.0, and 2.2.0

• 3DS 1.0 (2001): The original protocol was implemented to authenticate online transactions. However, it redirected users to the bank’s page, negatively impacting the user experience.
• 3DS 2.0 (2016): Introduced risk-based authentication (RBA), reducing checkout friction. In this version, merchants and issuers share 10 times more data, allowing silent authentication without additional challenges.
• 3DS 2.2.0: Further improved authentication with new features, such as:
  – Decoupled Authentication: Enables authentication without the cardholder’s direct interaction, useful for automatic subscription renewals.
  – Whitelist Feature: Allows merchants to be recognized and included in a trusted database, reducing friction in future transactions.

Key Benefits of EMV 3-D Secure

The protocol benefits all participants in the payment ecosystem:

For e-commerce and acquirers:

• Increased e-commerce security
• Higher authorization rates
• Reduced fraud in card-not-present (CNP) transactions
• Lower checkout friction
• Compatibility with multiple platforms and devices
• Reduced exposure to fraud-related chargebacks

For card issuers:

• Risk-based authentication (RBA) with better data-driven decisions
• Lower fraud in CNP transactions
• Increased approved transactions
• Higher consumer trust

For merchants:

• Reduced cart abandonment
• Smoother checkout process
• Fewer false declines

For consumers:

• Enhanced checkout experience
• Easier authentication
• Greater confidence in each transaction

How Does EMV 3-D Secure 2.2.0 Authentication Work?

1. The cardholder enters their payment details.
2. The merchant’s 3-D Secure provider sends an authentication request to the card issuer.
3. The issuer analyzes the transaction risk and determines if additional authentication is required (e.g., OTP request).
   • High risk: Requires additional customer verification.
   • Low risk: No additional verification needed.
4. The issuer returns the authentication result to the merchant.
5. The merchant processes the transaction with an authentication status indicator.

Beyond Security in Digital Transactions

The HST ACS solution, certified for EMV 3-D Secure 2.0 and later versions, manages cardholder authentication for issuers, offering strategic benefits such as:

• Reduced chargebacks and interchange fees
• Higher authorization rates
• 70% reduction in cart abandonment
• 85% reduction in checkout time
• Additional verification for high-risk transactions
• Compatibility across all devices

Discover the ACS (Access Control Server) Solution Compatible with EMV 3-D Secure 2.2.0

Our ACS solution manages cardholder authentication for issuers and stands out with the following features:

• Advanced control over authentication sessions
• Generates responses for interoperability domains
• Securely stores authentication requests and results

Certifications: Mastercard ID Check, Visa Secure 3DS, PCI 3DS, and EMV 3-D Secure 2.2.0.
Supports multiple authentication methods, including OTP via SMS.

Want to learn more about how to implement the EMV 3D Secure solution? Contact HST.

Want to keep reading? Visit our e-commerce security page to learn more.