3D Secure is the payment industry’s internet authentication standard which has been developed by major credit card associations. Visa calls their version of the scheme ‘Verified by Visa’ and MasterCard call theirs ‘MasterCard SecureCode’.
3D Secure authentication requires the cardholder to register their card in order to make the purchase. This is a onetime process which takes place on the card issuer’s website and involves the cardholder answering several security questions to which only the card issuer and cardholder will know the answer. The cardholder selects a password and agrees on a secret phrase, which will be used by the card issuer during each online transaction. Therefore, if the cardholder later on applies for a chargeback the merchant will not be responsible for the damage, and the dispute will be resolved between the issuer bank and the cardholder.
By providing this tool, Netpay International protects merchants from excessive chargebacks, negative processing history, account closure and black listing records.