Welcome to Woohoo Pay

PSD2, SCA and 3DSv2

What is Frictionless Authentication?

Frictionless authentication uses a risk-based approach to determine the risk attached to a transaction and, based on the risk level, whether the customer should be challenged with additional authentication steps.

3DS Continuation Requests

On completion of the 3-D Secure authentication, the ACS will send the challenge results to the threeDSRedirectURL provided in the initial request using an HTTP POST request.

What is PSD2?

The EU Payment Service Directive 2 (PSD2) is a European Commission initiative to increase consumer security and protection for European payment processing.

What are the benefits of 3DSv2.1?

Version 2.1 is the first version of version 2 available. Version 2.0 was mentioned previously but never was officially in production.

Why does EMV 3DS really matter?

The main reason that EMV 3DS is so important is because of false declines. False declines can happen when merchants and issuers are fearful of fraud losses.

SCA: Out of Scope Transactions

The transaction types listed below are considered to be out of scope of the SCA mandate:

Using 3DSv2 with the Hosted Integration

If your Merchant Account is set up for 3-D Secure, the Hosted Payment Page will automatically attempt to display the 3-D Secure authentication page for the Customer’s bank.

3DSv2 MMS Preferences

3DSv2 settings are found under the 3DS Checks and PDS2 tabs of the Preferences section in the MMS. In addition to the previous 3DSv1 settings available...

Are any transactions exempt from SCA?

For transactions that are in the scope of PSD2, a merchant can request that the SCA requirement be ‘exempted’ in certain scenarios. The issuer decides if the exemption is granted or not.

Why do VISA suggest their EMV 3DS version 2.2 is important?

Visa's version of 3DSv2.2 was designed with European regulation in mind. Some of the main features are

SCA: CoF (Credentials on File) Transactions

Credential on File (CoF) is the process of the cardholder authorising a Merchant to store their credentials (including but not limited to an account number or payment token), so the same Merchant can use them again at a later date.

SCA – Identifying Out of Scope and Exempt Transactions

By correctly identifying out of scope transactions and applying the exemptions, Merchants can minimise friction and reserve SCA for when it is needed:

How does 3DSv1 differ from 3DSv2?

Although 3D Secure version 1 (3DSv1) is compliant for SCA purposes, 3D Secure version 2 (3DSv2) offers a more advanced solution that provides a better customer journey and enriched data flows.

3DSv2 Liability Shift

One of the biggest benefits of 3D Secure 2 (3DSv2) is the chargeback liability shift. It shifts the liability for chargebacks due to fraud from the Merchant to the cardholder’s bank.

3DS: Benefits of version 1.0, 2.1 and 2.2

The table below shows some of the SCA based benefits of the different versions of 3DS:

What are the benefits of 3DSv2?

Using 3DSv2 enables Merchants to protect both their business and their customers against potential online card payment fraud.