3D Secure is a protocol that enhances the security of online banking transactions. By offering this option, a step is added in the purchase process: verification of the identity of the buyer. This option ensures that whoever is using a credit card to pay online is the owner.
As you know, the first step of an online payment is to enter your card number, name and surname and a date of validity and a cryptogram on the back of the card. 3D Secure is an additional step in the purchasing process, which reduces the risk of fraud.
The identity verification procedure differs according to the banks. The most used is to send a code by SMS to the owner of the card but it can also be the entry of personal information (secret question, date of birth) or to confirm a code on a grid.
For the merchant, this is additional protection, which reduces the amount of unpaid due to fraud (when a card is stolen, the purchase is disputed.For the customers, it is a security against the fraudulent use of their card.