Skip to main content

3D Secure 2 (3DS2) at Hello Clever Payment Gateway

At Hello Clever, we prioritise your business’s security and customer trust. 3D Secure 2 (3DS2) is an advanced security protocol that helps protect online transactions by verifying the cardholder’s identity in real-time. Building on the original 3D Secure standard, 3DS2 brings improved security with a seamless, user-friendly experience that reduces fraud and increases conversion rates.

Here’s everything you need to know about 3DS2 and how it enhances payment security on the Hello Clever Payment Gateway.

What is 3D Secure 2 (3DS2)?​

3D Secure 2 (often referred to as 3DS2) is a protocol developed by major credit card networks to add an extra layer of security to online card transactions. When a customer makes a payment online, 3DS2 verifies their identity through an additional authentication step, ensuring the person making the purchase is indeed the authorised cardholder.

Key Improvements of 3DS2 Over 3D Secure​

3DS2 is a significant upgrade over the original 3D Secure (3DS1), with several improvements to make online transactions more secure and seamless:

  • Frictionless Flow: 3DS2 aims to reduce friction by conducting “invisible” authentication in the background for low-risk transactions, allowing many customers to complete their purchases without any additional steps.
  • Biometric and OTP Authentication: When extra verification is required, 3DS2 supports biometric authentication (such as fingerprint or facial recognition) and one-time passwords (OTP), making the process more secure and user-friendly.
  • Reduced Abandonment: With its improved user experience, 3DS2 helps reduce cart abandonment rates, ensuring more customers complete their transactions.

How 3DS2 Works with Hello Clever​

Hello Clever integrates 3DS2 into our payment gateway, providing a secure and seamless experience for your customers. Here’s how it works:

  1. Transaction Analysis: When a customer initiates a transaction, 3DS2 assesses the risk level in real time. Factors such as transaction amount, device, and location are analysed to determine if further authentication is needed.

  2. Frictionless Authentication: If the transaction is deemed low-risk, it may be processed without any additional steps, making the experience smooth and efficient for the customer.

  3. Additional Authentication (if needed): For higher-risk transactions, 3DS2 requires the customer to complete an authentication step, such as entering a one-time password (OTP) or using biometric verification. This extra step confirms that the authorised cardholder is making the payment.

  4. Completion and Confirmation: Once authentication is completed, the transaction is securely processed, and both the customer and your business receive immediate confirmation.

This process ensures that every transaction is secure, while also providing a seamless experience for most customers.

The Benefits of 3DS2 for Your Business​

Incorporating 3DS2 into your payment processing has several advantages that ultimately benefit your business and your customers:

  • Reduced Fraud and Chargebacks: By verifying the cardholder’s identity before the transaction is processed, 3DS2 significantly reduces the risk of fraudulent activity, saving your business from costly chargebacks.
  • Higher Conversion Rates: The frictionless flow allows low-risk transactions to proceed without extra steps, leading to higher conversion rates and fewer abandoned carts.
  • Enhanced Customer Trust: With 3DS2, customers know that their payment information is protected, which increases their trust in your business and encourages them to complete their purchases.
  • Compliance with Security Standards: 3DS2 aligns with the latest payment security regulations and standards, such as PSD2 in Europe, ensuring that your business is compliant with industry requirements.

How 3DS2 Creates a Safer Payment Environment​

3DS2 works seamlessly behind the scenes to evaluate the risk of each transaction, which helps create a safer payment environment for both your business and your customers. Here’s how it ensures security at every step:

  • Dynamic Risk Assessment: 3DS2 uses data such as transaction history, device information, and purchase patterns to assess each transaction’s risk in real time. This dynamic approach ensures that only higher-risk transactions require additional authentication.
  • Adaptive Authentication: The protocol is adaptive, meaning that it only prompts additional verification when necessary. This way, customers don’t have to go through extra steps unless absolutely needed.
  • Support for Biometric Authentication: By supporting biometric authentication, 3DS2 makes online payments even more secure. Customers can complete their purchase with a simple fingerprint or facial recognition, adding a layer of security without adding friction.

3DS2 and Your Customers’ Experience​

At Hello Clever, we understand the importance of providing both security and a smooth customer experience. With 3DS2, you can offer customers peace of mind without slowing down their transaction process:

  • Minimal Interruption: With frictionless authentication, many transactions can go through without any customer involvement, ensuring a quick, seamless checkout experience.
  • User-Friendly Authentication: When authentication is required, customers can easily complete the process using familiar methods like OTPs or biometrics, making it as convenient as possible.
  • Improved Confidence: Customers are becoming increasingly aware of online security, and knowing that 3DS2 is in place reassures them that your business prioritises their safety.

Key Takeaways​

3D Secure 2 (3DS2) is an essential tool in today’s payment landscape, balancing robust security with a seamless experience. By incorporating 3DS2, Hello Clever provides businesses with a way to reduce fraud, increase conversions, and foster trust.

Benefits for Your Business:​

  • Reduced Fraud and Chargebacks: By verifying the cardholder’s identity, 3DS2 helps protect your business from fraudulent transactions and financial losses.
  • Higher Conversion Rates: Frictionless flow for low-risk transactions helps increase sales and reduces abandoned carts.
  • Compliance with Security Standards: 3DS2 keeps your business aligned with the latest security regulations, helping you meet industry requirements.

With 3DS2, Hello Clever brings you a powerful security tool that doesn’t compromise on customer experience, so your business can benefit from both improved safety and increased customer satisfaction.