Differences between 2D and 3D payment gateways www.deekpay.com

2D and 3D payment gateways

2D and 3D Payment GatewayThe main difference is in their security features. 2D Payment Gateway is a basic payment gateway that uses basic details such as credit card number and expiry date to process payments. In contrast, a 3D payment gateway is a more secure option that uses a one-time password (OTP) or two-factor authentication (2FA) to process payments.

What is 2D Payment Gateway?

The 2D Payment Gateway is a basic payment processing software that allows customers to make online purchases with minimal card information (e.g. card number and expiry date) and without additional security measures (e.g. OTP or 3D Secure).

2D payment gateways are widely used in countries such as the United States, Canada, the United Kingdom, Australia and India, where online shopping is very popular and customers prefer fast and convenient payment methods. Despite security concerns, e-commerce transactions in these regions often prefer the simplicity of 2D payment gateways.

2D payment gateways lack additional security elements such as OTP, so transactions are faster and smoother, but they also increase the potential for fraud and unauthorised activity. To protect customer data, organisations must use strong security precautions such as encryption andPCI DSS Compliance.

What is 3D Payment Gateway?

3D Payment Gateway is a secure payment processing software that allows customers to make online purchases using the 3D Secure Protocol, which consists of OTP (One Time Password) and 2FA (Two Factor Authentication) to authorise payments.

3D Payment Gateway ensures that only authorised cardholders can approve transactions. Customers must enter a One Time Password (OTP) sent to their registered email address or mobile device. This additional layer of security significantly reduces chargebacks and fraud.

3D payment gateways are common in areas where Internet security is paramount. They provide e-commerce companies with a reliable means of protecting sensitive payment data and increasing customer confidence.

3D Types of payment gateways

What is 3D Secure 1?

In 1999, Visa introduced 3D Secure 1, an XML-based protocol also known as Verified by Visa. The system added an extra layer of security to online credit card transactions by requiring a static password at checkout. While the system was successful in reducing e-commerce fraud, it was designed primarily for desktops and was not friendly to mobile devices.

As a result, the user experience on smartphones is not ideal. Strict validation procedures often result in unresponsive or poorly navigated websites on mobile devices.

What is 3D Secure 2?

3D Secure 2 is the primary card validation method used in Europe to meet Strong Customer Authentication (SCA) requirements and is a key mechanism for organisations applying for SCA exemptions. An upgraded version of the previous system, 3D Secure 2 improves the online and mobile payment experience with multi-device compatibility and support for multiple authentication methods such as biometrics and push alerts. It reduces checkout interruptions and employs risk-based assessments, allowing many low-risk transactions to continue without additional user authentication.

Key improvements over 3D Secure 1 include:

Improved user experience: checkout is more seamless with fewer redirects. Mobile optimisation: 3D Secure 1 has been designed with a user-friendly and responsive mobile interface in mind. Higher data utilisation: Large amounts of data are used for more seamless transactions and adaptive authentication.

Advantages of the 3D Payment Gateway

There are many advantages to using a 3D payment gateway on your website. The most obvious advantages include

Reduced Fraud Allegations: Using a 3D payment gateway reduces fraud allegations. Stronger protection: An additional layer of protection prevents the misuse of sensitive data. Customer Confidence: When customers are aware of the security provided by the 3D Payment Gateway, they feel more confident doing business with the site. Increased Sales: More secure shopping increases the number and frequency of purchases. Better service: Merchants are more satisfied with the outcome of their business transactions due to reduced fraud and chargebacks. International transactions: Merchants are more confident in their ability to conduct business internationally. PRO TIP: If you are an international merchant, consider applying for an international merchant account.

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Differences between 2D and 3D payment gateways

Project 2D Payment Gateway When the 3D Payment Gateway program conducts an online payment transaction, the 2D Payment Gateway asks the customer to enter credit/debit card information, including card number, cardholder name, expiration date, and CVV.After that, the Payment Gateway processes the transaction without asking for an additional password or security code. When a shopper makes a credit/debit card payment, the 3D Payment Gateway processes the transaction through SCA (Strong Customer Authentication). Customers are required to enter payment card information including card number, cardholder name, expiry date, CVV and an additional verification step called OTP/3D Secure to enhance the security of online checkout payments. Customers shopping online are protected from fraud and cybercrime. The relevant party involves 2 parties: 1. the customer 2. the merchant involves 3 parties: 1. the customer 2. the merchant 3. the payment environment system, including the Internet, servers and other components. Payment validation does not pass OTP risk: (business and customer) high low refund/fraud rate high low

Why do merchants prefer 3D to 2D payment gateways?

Why would a retailer want to put additional barriers to purchase on their website? The solution is simple. Data breaches, fraud and chargebacks are on the rise and will continue to increase as technology advances and people become more proficient at hacking.

Cybercriminals have unprecedented access to consumer information. They can access information such as SSNs (Social Security Numbers), addresses, and personal information to use credit card information.

This is particularly inconvenient for high-risk merchants, who must constantly reassure consumers that their information is secure and anonymous.

Therefore, what can high-risk merchants offer their customers to reassure them?3D Payment Processor. With a service like this, customers can be sure that their information is safe. This level of protection will encourage even the most hesitant buyers to shop on the site.

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As well as protecting customers, this has many benefits for retailers. It increases the likelihood that customers will shop on the site. It also benefits merchants by reducing the number of disputed transactions, fraud allegations and chargebacks. Most importantly, it doesn't have much of an impact on checkout or cart abandonment, and it hasn't been shown to reduce interest in buying products.

concluding remarks

Choosing the right payment gateway requires a balance between security and usability. 2D payment gateways are affordable and easy to use, but have a higher risk of fraud. In contrast, 3D payment gateways offer greater security through additional authentication, reducing fraud and chargebacks, but can be more complex and expensive. Consider your industry, transaction volume, risk tolerance and customer expectations to choose the most appropriate solution for a secure and efficient payment process.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.