1. 3-D Secure 2.0 What Merchants Need to Know
Hap Huynh, Visa, Sr. Director- Risk and Authentication Products
Mark Hey, Mastercard, Director of Product Management
Arvind Ronta, Discover, Global Head of Products
Ian Poole, CardinalCommerce, Director of Technical Product Management

2. 3-D Secure 2.0 3DS Evolution 2.0 Highlights and Improvements
Network Updates and Enhancements
What do merchants need to do?
Q & A

3. 3-D Secure Evolution 1999- Visa introduced 3DS protocol
2002- Visa began licensing the 3DS protocol to other card networks and become global standard for online authentication
2014- Visa and Mastercard developed and contributed a draft of the 3DS 2.0 specs to EMVCo
1.0 primarily PC based
Static passwords and step up challenges for most transactions
High friction and abandonment

4. 3DS 2.0 Aim to improved user experience & increase approvals
Removal of Activation During Shopping
Reduced number of messages required
Reduction in checkout time
Move towards risk-based authentication/challenge only the riskiest transactions
Increase use of dynamic one-time passwords
Device agnostic
Mobile/App-based authentication support
Digital Wallet, Non-payment-based authentication
Increase data exchange between the merchant and issuer to enhance risk- based authentication
Payment-related data
Non-payment related data

5. 1.0 vs 2.0 What will my customer’s experience look like?
Does it work for mobile, web or app?
How long does it take to authenticate the customer?

6. 3DS 2.0 Mobile or Merchant App Frictionless Flow
Cardholder selects product from the Merchant App
Cardholder enters payment details and checks out
3DS Requestor App communicates with 3DS Server which communicates with the ACS
The ACS authenticated via risk-based decisioning and no challenge required

7. 3DS 2.0 Mobile or Merchant (OTP)One Time Passcode
Cardholder selects product from the Merchant App
Cardholder enters payment details and checks out
3DS Requestor App communicates with 3DS Server which communicates with the ACS
Cardholder receives and enters the OTP via an SMS
OTP entered is communicated with the ACS for validation
The ACS authenticates and communicates back to the 3DS requestor application

8. 2.0 is Data-Driven – Here’s Why
Issuers are making a risk assessment and authentication decision without a re-directing the consumer to the ACS
Merchant’s will have control over friction-less and challenge flows
Merchant’s can run 3DS 2.0 on all devices and shopping channels
Passing data earlier benefits the merchant and issuer when deciding to authenticate a transaction
Data benefits issuers and merchants
1.0.2 and 2.0 will co-exist

9. Questions for the panel
How is 2.0 different than what is available now?
Does it expand to app-based transactions?
Will there be a specification for non-payment transactions

10. Network Insight Why is authentication important in the digital world?
How are the 2.0 changes beneficial?
What do the Networks like about 2.0 & why should merchants care?

11. 3DS 2.0 Panel
Hap Huynh, Visa, Sr. Director- Risk and Authentication Products
Mark Hey, Mastercard, Director of Product Management
Arvind Ronta, Discover, Global Head of Products
Ian Poole, CardinalCommerce, Director of Technical Product Management
If you have any questions about the presentation, go to our LinkedIn Group (the Payments Education Forum) and request an invitation (this is a closed group specifically for the payments industry).