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Payment Authentications are designed to stop credit card fraud by authenticating cardholders when performing transactions over the Internet by using the 3-Domain Secure™ (3-D Secure or 3DS) protocol developed by Visa.
A 3-D Secure transaction is performed immediately before a merchant performs a payment transaction, that is, Authorisation transaction in the Auth/Capture mode; and the Purchase transaction in the Purchase mode. Authentication ensures that the card is being used by its legitimate owner. During a transaction, it allows the merchant to authenticate the cardholder by redirecting them to their card issuer where they enter a previously registered password.
Note: 3-D Secure Authentication can only take place if the merchant is using a Payment Authentication model as the cardholder's browser has to be redirected to their card issuing bank where they enter their secret password.This is performed by the Payment Server if the cardholder is enrolled in the 3-D Secure schemes of Verified by Visa™ and MasterCard SecureCode™
Payment Authentication 3-D Secure transaction modes
The available Payment Authentication 3-D Secure transaction modes for Verified by Visa™ and MasterCard SecureCode™ are:
Mode 3a - Payment Authentication - Authentication Only transaction - the merchant uses the Payment Server to perform an authentication transaction and the payment transaction is processed as a separate transaction. This gives the merchant complete control as to when and if a payment transaction should proceed. The Authentication operation outputs become the inputs for a Payment Authentication with card details transaction. The merchant needs to collect card details.
Mode 3b - Direct Payments Style Pre-Authenticated Payment transaction - the merchant may use the Payment Authentication - Authentication only transaction through the Payment Server or an external authentication provider to perform the 3-D Secure Authentication, and use the outputs from this operation to perform a Direct Payments transaction through the Payment Server. The merchant needs to collect card details.
Information Flow of a 3D-Secure Authentication/Payment transaction
If you have been enabled to use Verified by Visa™ and MasterCard SecureCode™, the information flow for Verified by Visa™ and MasterCard SecureCode™ where the merchant collects the card details for use in an Authentication Only (Mode 3A) is as follows:
- A cardholder browses the application, selects a product and enters their shipping details into the merchant's application at the checkout page.
- The cardholder clicks a pay button and the merchant application prompts the cardholder for their card details.
- Once these are captured the merchant application redirects the cardholder's Internet browser to the Payment Server, which takes the encrypted Digital Order to the Payment Server .
- If the card is a Visa or MasterCard, the Payment Server
then checks with the VBV or SecureCode Directory Server to determine if the card is enrolled in either
the Verified by Visa™ or MasterCard SecureCode™ scheme.
If the cardholder's card is registered in the payment authentication scheme, the Payment Server redirects the cardholder's browser to the card issuing bank site for authentication. If the cardholder's card is not registered in the payment authentication scheme, the Payment Server redirects the cardholder's browser back to the merchant's site indicating the card is not registered - see step 7.
- If the cardholder's card is registered in the payment authentication scheme, the Payment Server redirects the cardholder's browser to the card issuer's site for authentication. The card issuer's server displays the cardholder's secret message and the cardholder enters their response (password), which is checked against the Issuing bank's database.
- At the completion of the authentication stage, the cardholder is redirected back to the Payment Server indicating whether or not the cardholder's password matched the password in the issuing bank's database.
- The Payment Server then redirects the cardholder back to merchant's site with the Digital Receipt. The Digital Receipt contains the result of the Authentication operation, where the merchant application decrypts the Digital Receipt ready for the Direct Payments payment,
Note: If the cardholder is enrolled in the 3D Secure scheme but is not authenticated correctly, for example, because the cardholder may have entered their password incorrectly 3 times, then the merchant's application is sent a response code of 'F' to indicate the cardholder failed the authentication process.
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