It is an E-Commerce Application for payment System. To know about the 3-D Secure password we need to know about 3-D and then 3-D Secure. 3-D Stands for Three Domains here. 3-D Secure is XML Based Protocol to implement the better security to the Credit and Debit card Transactions. So The Password formed by 3-D Secure Protocol is called 3-D Secure Password.
Three Domains Consist of Three Type of Domains. The Very First is Acquirer Domain. (The Merchant and The Bank to which money is being paid). The Second is Issuer Domain.(The Bank which issued the card being used) And Last but certainly not the least is Interoperability Domain.(The Infrastructure provided by the credit card scheme to support the 3-D Secure Protocol)
It was very firstly developed by the company “VISA” and gave the name “Verified by Visa” (VBV) . Now it is also adopted by the company “Master Card” and gave the name “Master Card Secure Code” (MCSC). It is also being used by the company “JCB International” and gave name “J/Secure”
CUSTOMER MERCHANT BANK INFRASTRUCTURE SERVICE OR PRODUCT
Basically 3-D Secure Password is used to provide the better security to the Customers for Transactions in the Online Payment System. For Online Purchasing mostly we have to pay Digital Cash so we have to deal online then it includes Bank, Merchant and Customer . So there is requirement of security from Fraud and Money Theft. It is being used for removing the Risk over the Internet so that customer can feel free in doing Online Transactions.
This protocol uses XML messages sent over SSL connections with client authentication (this ensures the authenticity of both peers, the server and the client, using digital certificates). This is a one time process which takes place on the card issuers website and involves the cardholder answering several security questions to which only the card issuer and cardholder will know the answer. The cardholder selects a password and agrees on a secret phrase, which will be used by the card issuer during each online transaction. 3D Secure can be thought of as an online version of “Chip and Pin technology”.
In order for a Visa or MasterCard member bank to use the service, the bank has to operate compliant software that supports the latest protocol specifications. Once compliant software is installed, the member bank will perform product integration testing with the payment system server before it rolls out the system. 3-D Secure Components ACS Providers MPI Providers (Access Control Server) (Merchant Plug-In)
In 3-D Secure protocol, ACS (Access Control Server) is on the issuer side (banks). Currently, most banks outsource ACS to a third party. Commonly, the buyers web browser shows the domain name of the ACS provider, rather than banks domain name, however this is not required by the protocol. Dependent on the ACS provider, it is possible to specify a bank owned domain name for use by the ACS.
Each 3-D secure transaction involves two simple internet request/response pairs: VEReq/VERes and PAReq/PARes. Visa and MasterCard dont license merchants for sending requests to their servers. They isolate their servers by licensing software providers which are called MPI (Merchant Plug-In) providers.
Transactions flow Achieve Security Using 3-D secure password Implementation of 3-D secure password Time spent
REGISTER YOURSELF WITH THE1 BANK BEFORE SHOPPING. DON’T ENTER A PASSWORD TO2 THE POP Ups. BANK MUST PROVIDE THE3 CUSTOMER THE INLINE FRAME(IFRAME).
Reduction in “Unauthorized Transactions” CHARGE BACK. More Security and Reliability. More Security means more of the Customers more if Transactions which is beneficial. Authentication
Decreased Risk of Fraud for Online Payment. Better Password Security. Better Online Shopping and Payments System.
For the Merchant It can be too expensive because in Purchasing Software, Monthly Fee, Setup Fee, Per Transactions Fee so customer has to also face these Expenses. There may be more phishing attacks with unfamiliar domains because of Vendor’s MCS and Out Sourced ACS Implementations by issuing banks.
It was officially launched in 2007 and now most of the banks are working with this. ICICI and more Banks are working on implementing on 3-D Secure. As Now more than 100 vendors are developing 3-D Secure. Current Version 1.0.2 is running with high Performance.