The major problem with credit card usage in E-Commerce is due to the fact that you cannot identify your customer personally. This means: You don't know, whether the shopper entering credit card data is in fact the cardholder. By the technological standard 3-D Secure - developed by Visa - this changes, because the customer can clearly be identified as the cardholder. This provides a reliable authentification, which prevents attempted fraud at an early stage.

Pago offers authentification according to 3-D Secure as well for Visa as for MasterCard. The processes don't vary technically, but bear different product names:

	Visa: Verified by Visa
	MasterCard: MasterCard SecureCode

If you decide to use Verified by Visa and/or MasterCard SecureCode, you are on the safe side of E-Commerce.

The principle of Pago 3-D Secure

The following steps are involved in the implementation of 3-DSecure authentication:

	The cardholder has to register his credit card for 3-D Secure at the issuer.
	The merchant has to implement the integration of the D Secure payment and authentication process into his credit card payment processing.
	Pago, as the acquirer, implements 3-D Secure at the merchant as well as arranging the necessary for 3-D Secure contract and registration with the credit card organizations; during operations, Pago submits 3-D Secure transactions into the credit card systems.
	The issuing bank enrols cardholders for 3-D Secure and processes identity checks for 3-D Secure transactions.
	The credit card organizations (Visa / MasterCard) are responsible for the technical interface between the acquirer and the issuer and for the transaction data exchange between acquirer and issuer using the 3-D secure protocol.

 to top

Pago 3-D Secure process

3-D Secure authentication is generally processed as follows:

1. The cardholder fills his shoppping cart and selects credit card payment. He then enters the credit card data.
2. Pago routes the credit card data via the credit card organization to the issuer.
3. The issuing bank checks whether the card is registered for 3-D Secure and sends the authentification server URL (ACS) to the cardholder's computer.
4. A re-direct to the ACS is generated on the cardholder's computer.
5. The cardholder's computer is redirected to the ACS.
6. The cardholder receives an input form from the issuer and is required to submit his 3-D Secure password.
7. The authentification server checks this password and forwards a response via the customer's computer to the acquirer.
8. After receiving the response from the authentification server, Pago initiates the authorization.

 to top

Your benefits:

	Security: 3-D Secure enables the authentication of the cardholder before authorization and provides proof that the credit card was used by the legitimate cardholder.
	Confidence: 3-D increases cardholder confidence in E-Commerce.
	Fraud prevention: potential fraudsters fail at the point of authentication.
	Payment security: Cardholders can no longer reverse payments on the grounds of not being responsible for the transaction.
	Cost reductions: 3-D Secure reduces the number of chargebacks as well as associated bad debt and transaction costs.
	The future: 3-D Secure is a security method, which is supported by both leading credit card organizations and should evolve into the leading security system for credit card transactions within the next few years.

 to top