EMV 3DS transition update
All stakeholders within the e-commerce and online payment industry are keen on ensuring the security of each and every online transaction.
The industry’s interest is to reduce fraudulent transactions and to enhance the security of online payments, while at the same time promoting the cardholder’s overall experience in the online payment environment. Performed effectively, these efforts will without question lead to better revenues of particular e-commerce merchants and the whole industry will yet further sustain its position as the future of all payment services.
What you already know about 3DS 1.0.2.
To that end, 3DS 1.0.2. was introduced over 15 years ago. It was designed to make online payments more secure by enabling an issuer to authenticate its cardholders, thus ensuring payments are made by the legitimate owner of the account.
To foster the set goals even further, EMV 3DS, an updated version of the 3DS 1.0.2. was published in October 2016. It provides for a seamless user experience, enhanced data exchange for better fraud management and authorization decision making, and support across multiple payment channels and devices.
With the event of the SCA mandate established under the PSD2, the inevitability of the transition from 3DS 1.0.2. to EMV 3DS became even more apparent.
What Visa intends to do?
Visa has recently reaffirmed its commitment to support the industry’s full transition from 3DS 1.0.2. to EMV 3DS. Effective 15 October 2022, Visa will discontinue support for 3DS 1.0.2 and all related technology.
Such changes are not accomplished easily. Being well aware of that, Visa has decided to give its clients more time to prepare for the full abandonment of 3DS 1.0.2. by revising the rule change announced earlier to remove merchant fraud liability protection on 3DS 1.0.2.
What is it going to look like?
From 16 October 2021 onwards Visa will continue to support 3DS 1.0.2 transaction processing, while at the same time:
- If a particular issuer continues to support 3DS 1.0.2. after the effective date, Visa will guarantee Merchants fraud liability protection on all transactions processed under 3DS 1.0.2. using payment cards issued by this issuer.
- If a particular issuer no longer supports 3DS 1.0.2. following 16 October 2022, Merchants may still process transactions made using payment cards issued by this particular issuer under 3DS 1.0.2., yet Merchants will have to assume full liability for fraud-related disputes.
What Mastercard will do ?
From 18 October 2022, Mastercard will no longer support any 3DS 1.0 transactions for cardholder authentication either. Any authentication submitted through 3DS 1.0 will result as rejected. The owners of e-shops should therefore migrate to EMV 3DS (2.0) to successfully receive all payments from their customers after this date.
Start with your transition to EMV 3DS to ensure no transaction impacts and let your customers pay safer with several transaction flows, including in-app authentication and non-payment authentication.
In order for Merchants to avoid any inconveniences in the future and to boost the sound operation of their e-commerce businesses we recommend Merchants migrate to EMV 3DS in a reasonable time – the sooner the better. To find out more on the migration to EMV 3DS, do not hesitate to get in touch at sales@trustpay.eu.
