What is the primary benefit of using 3D Secure for transactions?

The primary benefit of using 3D Secure for transactions is the reduced risk of fraud. This technology adds an additional layer of authentication during the online payment process. When a customer makes a purchase, they are often required to complete a verification step, which might include entering a password or providing a one-time code sent to their mobile device. This verification step helps confirm that the person making the purchase is the legitimate cardholder, thereby significantly decreasing the chances of unauthorized or fraudulent transactions.

Merchants benefit from this process as well, as successful authentication can shift some of the liability for fraudulent chargebacks away from them. This can lead to a safer transaction environment and increased customer trust, ultimately supporting better overall business performance.

Faster processing times, lower fees, and the ability to charge customers more are generally not direct benefits of 3D Secure. In most cases, implementing additional security measures like 3D Secure can lead to minimal delays in processing, and while it may indirectly support better rates over time by reducing fraud, it is not primarily designed for cost reduction. Additionally, charging customers more does not correlate directly with the application of 3D Secure technology.