This process is familiar to customers through the card networks’ brand names, such as Visa Secure and Mastercard Identity Check.
3-D Secure is a password-protected authentication system designed to confirm the identity of the cardholder when a credit card is used online in suspicious, or different than usual circumstance (for example, if you’re shopping online while travelling).
By requesting a password known only to the cardholder, the bank can verify that the genuine cardholder is entering their card details into an ecommerce website. The password may be one that you nominate yourself and must remember, or, it could be a code that your bank sends you via SMS when you are about to make an online payment. It helps to prevent fraudulent transactions and gives all parties in the payment process greater peace of mind.