What Is a 3D Payment Gateway?

A 3D payment gateway is a necessity for all businesses aiming to reduce the risk of fraud and chargebacks. A 3D payment gateway can prevent data breaches, thus reducing your risk of fraud. It can also make the transaction process easier and more inviting to your clients.

The gateway uses a secondary password that links to a customer’s credit card. The effort adds a new way for the customer to verify one’s identity, thus improving how the customer accepts payments.

The Concept

A 3D payment gateway is a gateway solution that uses 3D Secure technology. It adds protection by giving the customer the right to confirm a payment that will happen with one’s card. The process works for Visa and MasterCard purchases, although other networks have started dabbling with 3D Secure payments.

The 3D Secure process entails three domains responsible for authenticating a transaction:

  1. Acquirer – The acquirer domain entails the bank and the merchant.
  2. Issuer – The bank that issues the credit card also works as a domain.
  3. Interoperability – The credit card network will also be a domain. Visa’s Verified by Visa program and MasterCard’s SecureCode system are examples of this point.

The 3D payment process works with these parties to help confirm a customer’s data. The 3D payment effort includes work to see how well someone works.

The Process For Work

The 3D payment gateway will use a unique process for improving security:

  1. The customer will start a transaction with an online retailer.
  2. When paying for something with a credit card, the customer will go to another section to enter a password to confirm one’s identity.

The password will link to whatever credit card the customer holds. A customer should have a separate online account that lets the user check one’s card data and balance. The customer can enter the password linking to that card to confirm one’s identity.

  1. The password is verified, and then the transaction goes through the gateway to the network.
  2. The payment process goes as planned, with the merchant receiving a signal that the transaction was either accepted or declined.

The 3D payment gateway process provides a simple setup that isn’t tough to follow. It doesn’t take much time for someone to verify one’s data in the gateway.

There is still a natural belief that people may be bothered by an extra step in the work. Customers will likely feel more confident in their purchases when they see that they’re entering a secure environment for paying. By confirming one’s identity through a card account, the customer will prove that person is the one completing the deal.

A Necessity For CNP Transactions

Your business will require a 3D payment gateway if you accept plenty of card-not-present or CNP transactions. These deals often occur online and can work with anyone using someone’s card. Anyone could acquire a card and use that data, thus potentially committing fraud.

With a 3D payment gateway, you’re asking the user to provide a new password linking to one’s credit card. The transaction cannot go forward if the data thief doesn’t have the password. Therefore, the risk of fraud and a possible chargeback will be reduced.

The gateway keeps the risk of accepting CNP transactions down. The effort is vital for all high-risk retailers, especially those that are already dealing with high interchange rates.

Control Fraud Liability

Your business will often be liable for fraud if anything wrong happens with a credit card transaction. But a 3D payment gateway will move the fraud liability away from your business. It provides chargeback protection, as the card issuer will be liable for any possible fraudulent issues. By requiring the shopper to enter a password for one’s work, you will avoid bearing the most liability.

You will experience fewer chargebacks when you use a 3D payment gateway. Considering how high chargeback fees can be and how inconvenient it is to lose funds from cancelled sales, the 3D payment gateway will make a real difference in your work.

Does It Cost Anything Extra?

The best part of using a 3D payment gateway is that you don’t have to spend anything extra to get a gateway running in most cases. The credit card networks provide free access to their verification systems to all retailers.

Some acquiring banks may still charge you to add a 3D payment gateway, but the savings you’ll get on your transaction costs will likely offset those charges. You may even save money, as your risk will drop. You could qualify for lower interchange rates, although not all credit card networks are willing to support your work.

Are There Any Problems?

While a 3D payment gateway can be convenient, there are some problems with the setup. Some customers may not understand how such a gateway works. They may be turned off by having to enter a second password for a purchase.

Some web browsers may also make it harder for you to accept 3D payments. Some gateways will produce a pop-up window for verification use. You’d have to request your customers disable pop-ups on their browsers if they want to complete payments with you.

Customers could also forget their passwords at times. Not all customers will think about checking their cards on occasion. Some may use programs that memorize their passwords and rely on them to where they forget about those passwords. It becomes tougher for customers to complete their purchases when they don’t recall the passwords they’re trying to use.


A 3D payment gateway will be sensible for when you’re aiming to find a suitable solution for collecting payment data. A gateway will reduce your risk of fraud and chargebacks, plus it can help you save money on your card processing charges.

Be aware of how you’re getting a gateway ready, and be sure whatever you use can support 3D Secure payments. You’ll especially require one of these solutions when you’re trying to accept card-not-present transactions and other high-risk deals.

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