3 Domain Security
- is a new method of security mandated by the Card Associations to
enhance the security of online transactions. Mastercard's product is called
"SecureCode" and Visa's product is called "Verified by Visa".
The 3D-Secure refers to three domains involved in the security they are
the Acquiring or Merchant's bank
the Card Association's financial networks ie Mastercard and Visa
the Issuing or Cardholder's bank.
Very simply the system authenticates the cardholder before the transaction takes
place by diverting the browser to the bank that issued the card, who then
request some secret, perhaps a pin, from their cardholder that will conclusively
prove that this actually is the cardholder entitled to use this card. Once they
are satisfied that this is their cardholder they issue an authentication receipt
which is then presented to the merchants bank along with the authorisation
request. If the transaction is then approved by the issuing bank they may not
charge the transaction back to the merchant because the cardholder disputes the
transaction as not being originated by them.
Virtual Card Services is compliant and in fact was the first South African
payment gateway to be certified by both Mastercard and Visa for 3D-Secure
transactions through First National Bank, Standard Bank and ABSA.