With the rise of e-commerce, ensuring the security of online payments has become a big concern for businesses and customers alike. This is why high-risk businesses in Malaysia are adopting 3D Secure authentication as an additional layer of protection for online transactions.

Curious about why 3D Secure is a requirement for those businesses, and what's the easiest way for businesses to implement it? In this article, we’ll give you the answers to all your questions related to 3D Secure.

What is 3D Secure?

3D Secure is an authentication protocol used as an added layer of protection for online transactions. 3D Secure enhances security measures for customers and businesses through transaction validation with a one time code.

The name “3D” refers to the involvement of three domains: the card issuer (representing your customer), your business, and the 3DS infrastructure platform (the payment gateway) acting as an intermediary between customers and businesses.

High-volume transaction businesses often operate in environments with high cybersecurity risks. Therefore, implementing 3D Secure measures is a proactive step to safeguard your online business against potential cyber threats and ensure the security of your transactions.

Differences between 3D Secure and non-3D Secure transactions

For 3D Secure transactions:

1. Customers enter their payment details, including card number, expiration date, and CVV, on the website or mobile app.

2. Typically, they are redirected to a 3D Secure webpage, where they are required to authenticate using the SMS OTP. In cases where the issuer determines that no further authentication is required (the transaction qualifies for Strong Customer Authentication), users can proceed without going through the redirect flow.

3. The system exchanges encrypted data for verification and confirms or denies the transaction.

4. Customers receive a notification about the transaction’s outcome.

In contrast, non-3D Secure transactions lack this authentication layer. Transactions proceed directly after card details are entered, posing a higher risk of unauthorized purchases.

Why is 3D Secure a Must for Businesses in Malaysia?

E-commerce fraud resulted in losses totaling MYR 57.73 million in Malaysia in 2021. As a result, the government mandated the use of 3D Secure for online card payments and required businesses to use a 3D Secure-supported payment gateway.

This requirement is crucial for:

Gaining customer trust

Amid rising fraud, 3D Secure adds a layer of security and authentication to protect merchants and customers, solidifying customer trust and loyalty.

Ensuring business growth

To ensure business growth and mitigate the risk of fraudulent activities, 3D Secure is essential for e-commerce businesses in Malaysia. It adds an extra level of protection, enhancing overall security for online transactions.

By adopting 3D Secure, businesses can confidently focus on their growth and operations, knowing they are effectively safeguarded against potential cyber-attacks on their stores.

The benefits of 3D secure implementation for businesses

While 3D secure is government-mandated, it offers tangible value for businesses.

Improved authorization rate and fraud reduction

One study found that 3D Secure can reduce credit card fraud by up to 40%. By adding additional authentication measures, such as one-time passwords (OTP), 3D Secure adds a level of protection to the payment process. This helps verify the identity of cardholders and reduces the risk of fraudulent transactions.

Moreover, have a look at our article on how to protect your business against fraudsters.

Chargeback reduction

Chargebacks occur when customers dispute transactions and request their bank to reverse the payment. This can have various impacts on online businesses, including financial loss and administrative burdens. Moreover, if chargebacks happen frequently, it can make the business appear suspicious or unreliable, potentially leading to fines.

Research suggests that 3D Secure usage can decrease chargebacks and customer complaints by 80%. It ensures transactions only proceed with customer authorization, reducing unauthorized use and subsequent chargebacks.

The easiest way to implement 3D Secure

Businesses can acquire 3D Secure by directly integrating with card networks, but this can be tedious and complex. Many opt for a more accessible solution: a 3D Secure payment gateway.

Here’s how to implement 3D Secure with Opn Payments:

1. Sign up with Opn Payments: Get your account and test out our 3D secure payment gateway for free

2. Activate the live account : Submit required documents via the dashboard for identity and business verification

3. Test the integration thoroughly: While Opn’s KYC team reviews your documents. Test out your integration to ensure that the 3D Secure payment flow is working properly before going live.

4. Go live: Once the integration is ready, you can start accepting payments with 3D Secure.

For an additional layer of protection for your online transactions, businesses in Malaysia can rely on Opn Payments, a dependable 3D Secure payment gateway. Trusted by over 22,000 businesses around the world, we offer secure, smooth online payment services. Our straightforward integration ensures easy payment processing, helping brands in Malaysia safeguard customers and capitalize on growth opportunities.

For any queries about 3D Secure implementation, the Opn Payments local support team is here to help. Partner with Opn Payments today for secure and efficient online transactions.