Secure Credit Card Processing
On the 1st of July 2007 UK banks made it mandatory for online stores to implement a new system called 3D Secure for Maestro transactions. However by implementing this system it also means that all other card transactions are also covered by 3D Secure and as a retailer we are not allowed to just process Maestro transactions using 3D Secure.
What is 3DSecure
3D-Secure is an intiative introduced by different card schemes to reduce Internet fraud by adding an additional authentication process to online payments. In essence it is the Internet version of chip and pin, where during the payment process, the card holder is forwarded to their own bank to verify they are the card holder. The benefit for merchants is that by the card Issuing Bank authenticating the user, merchants are protected from some charge backs.
Visa’s implementation of 3DSecure is called Verified by Visa. Mastercard’s implementation of 3DSecure is called Mastercard Securecode which also convers transactions using Maestro. Switch is no longer a recognised brand having been totally taken over by the Maestro brand since the 1st of June 2007.
How does 3D Secure work?
The way 3D Secure works is generally as follows :-
- i) Cardholder completes your normal payment form.
- ii) Cardholder is then redirected to their card issuing bank’s web site to either enrol for 3D Secure or to authenticate if they are already enrolled. (Authentication involves entering the relevant password for their card).
- iii) Following successful enrolment/authentication the cardholder is then redirected back to our server and the transaction proceeds for authorisation. (If the enrolment or authentication fails then it could result in the transaction being aborted at that point and lost).
- iv) If transaction is authorised, cardholder sees your usual confirmation page. If not authorised, cardholder sees your usual decline page.
There are a few exceptions to this process but this would cover the most common transaction flow with 3D Secure enabled.
