Many regions now require additional authentication for online card payments by law, including the EU (PSD2), UK, India, and Brazil. Even where not mandated, card issuers frequently trigger authentication based on transaction risk factors.
3D Secure adds an authentication step to card payments. Instead of just checking card details, it requires customers to verify their identity through their bank or card issuer before the payment completes.
How 3D Secure Works
When a payment requires authentication, the flow redirects customers to their bank’s authentication page. For digital wallets like Apple Pay and Google Pay, authentication typically happens through Touch ID or Face ID on the customer’s device after they select their payment method within the wallet. For traditional cards, common authentication methods include:
- SMS OTP: One-time code sent to registered phone number
- Banking app: Push notification requiring approval
- Biometric: Fingerprint or face ID through banking app
- Digital wallet: Touch/Face ID for Apple Pay, Google Pay transactions
The authentication happens after card details are entered but before payment processing. Failed authentication blocks the transaction entirely.
When 3D Secure Triggers
Regulatory requirements: Multiple regions mandate additional authentication for online card payments:
- European Union: PSD2 requires Strong Customer Authentication (SCA) for most online payments (European Commission)
- United Kingdom: FCA regulations require SCA for card-not-present transactions (FCA Policy Statement, FCA Guidance)
- India: RBI mandates Additional Factor Authentication (AFA) for online card payments (RBI Framework, Business Today)
- Brazil: Central Bank requires mandatory two-factor authentication (2FA) standards for digital payments (Checkout.com)
- Argentina: BCRA regulations govern payment system security, though specific authentication requirements vary by payment method (BCRA Payment Regulations)
Specific thresholds and exemptions vary by region and are subject to regulatory updates.
Risk-based decisions: Card issuers and payment processors trigger 3D Secure based on transaction risk factors:
- Transaction amount and frequency
- Customer location and device
- Merchant risk profile
- Historical fraud patterns
Merchant configuration: Some merchants require 3D Secure for all transactions as a fraud prevention measure.
3D Secure in Orchestra
Orchestra handles 3D Secure authentication automatically through both API and Library implementations:
With Orchestra API
When a payment requires authentication, Orchestra’s API handles the authentication flow and provides the necessary redirects and status updates for your application to manage the customer experience.
With Orchestra Library
Authentication happens seamlessly within the payment form. Customers see the authentication challenge as an overlay without leaving your checkout page. The Library handles all redirect logic and status updates automatically.
Why 3D Secure Matters for Your Business
Chargeback protection: Authenticated transactions shift liability from your business to the card issuer. When authentication succeeds, you’re protected from chargebacks related to unauthorized card use, directly reducing dispute costs and protecting revenue.
International expansion enablement: 3D Secure compliance opens markets that would otherwise be inaccessible. Without proper authentication, you can’t process payments in the EU, UK, India, and other major markets. Orchestra handles regional authentication requirements automatically, letting you enter new markets without building separate compliance infrastructure.
Fraud reduction: Authentication verification significantly reduces card-not-present fraud by confirming cardholder identity before payment completion. This means fewer fraudulent transactions, reduced chargeback rates, and protection of your payment processor relationships.
Customer confidence: Secure authentication builds trust in your payment process. When customers see familiar banking authentication flows, they’re more likely to complete purchases and return for future transactions.
Compliance automation: Orchestra’s implementation meets PSD2 SCA requirements and regional regulations without additional development work, eliminating compliance as a barrier to global expansion.
Technical Considerations
3D Secure adds friction to the payment experience. Authentication failures result in abandoned transactions, and the additional redirect step can increase checkout abandonment rates.
Orchestra optimizes authentication by:
- Only triggering authentication when required by regulation or risk assessment
- Providing seamless in-page authentication through the Library to maintain checkout flow
- Supporting all major authentication methods without additional integration work
- Handling authentication timeouts and failures gracefully
- Ensuring consistent authentication experience across all supported regions and payment methods
This approach reduces checkout abandonment while maintaining security and compliance requirements. The authentication requirement is determined by the card issuer and payment processor, not by Orchestra or the merchant.
