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What is a 3D Payment Gateway?

3D Payment Gateway

A 3D Payment Gateway is an intermediary that makes online transactions feasible. Merchants utilize it to take online transactions. The process involves collecting clients’ credit or debit card information, which is taken into account to process the transaction. Alongside high risk merchants and the customers, those involved are banks that issue bank cards (the ones that give credit and debit cards) and acquire banks (the banks that receive payment from customers). An efficient payment platform will ensure quick and hassle-free transaction processing, as well as compliance with security standards. There are two varieties of payment Gateways that we have mentioned previously, i.e., 2D and 3D. What’s the distinction between the two?

2D Payment Gateway

A two-dimensional payment gateway is an alternative payment gateway that accepts payment transactions without the need for additional security checks, such as OTP. What’s required is information about the credit or debit card of the customer (credit/debit card number and expiry date, CVV). It’s easy, simple and efficient. PayU, Go Payments Inc, Braintree, etc. They are all two-dimensional payment gateways. They are available in the USA, Canada, and several European countries, which have two-dimensional payment gateways for transactions online.

What exactly is a 3D payment gateway?

A 3D gateway works like a 2D payment gateway. However, there is an additional verification procedure that enhances security. An OTP (one single password) is generated prior to the money being taken from the cardholder’s bank account. OTP is a security code composed of random numbers created and then sent to the holder’s cell phone through soft tokens, SMS, or email whenever a new transaction needs to be conducted. An OTP will usually last for a brief period, ranging between 15 and 30 minutes, depending on the service provider and type of service. This additional layer of security generally separates 3D and 2D payment gateways.

What exactly is a 3D Secure Payment Gateway?

A 3D payment gateway functions the same in the same way as a two-dimensional payment gateway. It, however, comes with an additional step of verification, which increases the security of online transactions. Prior to the transaction being deducted from the account of the user in online payments it is when an OTP will be generated. The OTP is a code comprised of random numbers that are transmitted directly to the mobile phone number of the cardholder via Soft certificates, SMS, or email whenever a fresh payment is needed. The OTP generally lasts between up to 15 minutes, depending on the service provider and the type of services offered. It is an additional layer of security that is what differentiates 2D and 3D financial transactions.

There are two types of 3D Payment Gateway

3D Secure 1

3DS1 was the initial and first model of the 3DS protocol, which was a system that Visa introduced in 1999. It offered security against fraudulent purchases made with desktops. The time was when people didn’t have smartphones, so 3DS1 was not compatible with mobile phones; it was only compatible with computers. The customers faced difficulties when paying with their mobiles, and as a result, shopping online decreased as consumers abandoned shopping carts. In order to avoid this, 3DS2 came into existence. It gives a seamless experience for customers regardless of the device they use.

3D Secure 2

3DS2 gives users a more pleasant experience, collects more data, and reduces the risk of online fraud. The 3D Secure 2.0 version provides a live and safer pipeline for merchants to utilize.

Specifications in 3D Payment Gateway

The mechanism used to operate a 3D payment gateway differs from that of the working mechanism of a 2D payment gateway.

The following are some features of a 3D-based payment gateway:

  • The customer chooses products or services to purchase and provides payment details via credit or debit card.
  • Let’s say you’re a retailer that has enabled 3D secure payments. If this is the case, customers will see an ad-hoc display. The bank will ask for a unique number of authentications for verification of their authenticity. This number is valid only for one time and will usually be transmitted to the customer’s cellphone via text messages.
  • The purchase is acknowledged, and the transaction is completed when the coupon is accurate.
  • The consumer should be aware that they can take three occasions to verify an online purchase transaction before it’s denied, and the card is held until they can contact the bank that issued their card.

The Advantages of 3D Payment Gateway

Higher Security:

After the user has entered the payment details, they’re taken to the next screen where they must input their One Time Password sent to the registered mobile number of their choice, which makes it a safe procedure. The OTP can be used for only a couple of minutes. Within that time, customers must use it to confirm their card details.

Reputation:

Since consumers are aware of the fact that 2D payment gateways are dangerous, they prefer businesses that use 3D payment gateways because they are less risky and reliable. If companies have an online payment system that uses 3D to collect payments, they are able to establish credibility with their customers quickly.

Secure Cross-Border Transactions:

Cybercrimes are more likely to be a problem with international transactions. However, payment gateways that are 3D make sure that there is less risk for both customers and merchants. Thus, they make payments quickly as well as securely.

The reduction of fraud and chargebacks

Since the very beginning of the piece, we’ve been highlighting how secure the 3D payments processor is. Because OTP is part of the process, hackers aren’t able to access the mobile phone number of the client, making it difficult to perpetrate fraud. Although they may have information about the credit card, without OTP, the hackers aren’t able to complete the transaction, thus protecting the buyer’s hard-earned cash. In addition, charges are less, which makes it a trusted payment processor.

Conclusion

Although the 2D and 3D gateways work present at their Point of Sales, the alternative is far more efficient as well as secure. When one expands its operations globally, A 3D payment system convinces customers to purchase since it minimizes the dangers in national and international transactions.

The SCA or Secure Customer Authentication (SCA) via OTP allows the 3D payment gateway to be an excellent and well-known payment gateway. It is a simple fact that the use of a 2D payment processor has the possibility of fraud. On the other hand, the 3D Gateway offers an unsecured way to conduct online transactions.

A 3D payment gateway is an essential intermediary that facilitates transactions online. It is a means for merchants who want to make transactions to process through the secure collection of clients’ credit or debit card information. This involves cooperation not just between merchants and clients but also between banks that issue cards (providing credit cards) and the acquiring banks (receiving payment).

A reliable payment system guarantees quick, smooth transaction processing and adherence to security guidelines. In the list of platforms, 5 Star Processing stands apart for its wide range of safe online payment options. It offers a safe and secure platform and streamlines the process, thereby saving time. With the help of a trusted 3D payment system, it ensures the effectiveness and safety of transactions online and is a preferred choice for consumers and companies alike.

 

FAQs

What exactly is a 2D or three-dimensional payment system?

The 2D payment gateway is an online method of payment that requires the user to input the details of their credit card and then complete the transaction using two dimensions. The 3D payment processor is an innovative online payment option that provides the security of a unique authentication method that requires customers to input a single password before the transaction process even begins.

Are payment gateways that are 2D secure enough?

Though 2D payment systems are not as secure as 3D pay-to-go, they provide sufficient security.

Which is better? 2D or 3D-based payment gateway?

It is based on the needs of your business and the degree of security that you want. It is possible to use a 2D payment gateway, which can be more convenient, but it is more secure than an online payment processor. The 3D payment gateway provides additional security, but the entire transaction process can take longer.

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