What is a 3D and 2D Transaction Processing System?

How Does Credit Card Authentication Work?

To make and process a fee while online shopping, you will need to pass an authentication process. This is a 3D secure procedure that requires card details. The essence of authentication is to check and identify legitimate customers and unacceptably fraudsters.

 Understand how authentication works, let's figure out what you need for this procedure, how it happens and what takes place after you provide your data:

1. Payment initiation. You make a purchase and provide your credit card payment information on the site;

2. Data transmission. The platform sends encrypted data to the remittance system, and then to the client’s bank;

3. Funds verification. The receiver’s bank sends approval if you have the required amount of money;

4. User authentication. You pass verification, usually by confirming charge through an online banking account. You will need to provide a password or login to enter online banking or log in using biometrics;

5. Transaction completion. The site completes the transaction.

This is an instant procedure that does not take much time. When you use charge services, you will need to verify your identity so that the system knows that you are who you say you are. Otherwise, the transaction will not be approved. Unfortunately, the number of cases of illegal use of funds is only growing. Therefore, to prevent this, it is worth giving reference to 3D secure payment gateway with authentication

What Do You Need to Know About 2d Payment Gateway? 

Almost every one of us has used a 2d payment gateway while making online remittance. To perform such a transaction, you need to provide the card details, namely your card number, card expiration date and security code. At the same time, you need to perform other transactions. These are all the steps that are required to make a contribution. However, this method of payout is not so secure nowadays because you don't need to specify a one-time password or other layer of security methods. 

For your business, 2d bank will provide many benefits. First, you will provide your customers with a simple user experience and fast transactions. Second, you will be able to process transactions instantly. Thirdly, it is a globally available method of making transactions while acquiring, allowing businesses to expand their reach and open up new markets. 

One can highlight the popular international 2d payment gateway sites list PayPal, Stripe, PayU and so on. However, this method has some disadvantages. The biggest risk is security, because there is no additional authentication during such transactions. This increases the risks of fraud and reduces the security of users. Although such transfers provide fast transactions, you are still at risk due to minimal security measures.

Best 2d payment gateway methods are better used for low risk transactions. For example, when you are buying something inexpensive online. You can also use this method of making charges to pay for a subscription or if you need to make a quick transaction in a hurry. However, remember that there are always risks.

The Key Features and Main Advantages of 3D Payment Gateway

What is 3D payment gateway? This is a question that interests many consumers who are used to 2D fees. The 3D secure payment gateway is a modern way of performing protected transactions. It takes a little more time then its predecessor, but it provides defended reimbursements. The main feature is the fact that before finalizing the transaction, the customer is redirected to the bank's page. Users then need to confirm their identity by providing the password or authorizing through biometrics. In this way, the risk that the disbursement will be fraudulent is reduced.

Many customers prefer to use this method of payout because of the increased security and reduced risk of fraud. In addition, banks are particularly happy to cooperate with those companies that use 3D payment gateway.

However, 3D secure 2.0 has its drawbacks. You will need to go through a longer procedure to complete a transaction. Thus, if users have difficulties, they may abandon the purchase. So despite increased security, sometimes it can lead to a decrease in the number of sales in ecommerce business.

It is better to use this charge method while performing transactions for large amounts when you are buying expensive items. This way, you reduce the risks of losing these funds. For example, if you like to buy jewelry or luxury items, then prefer a 3ds payment gateway. Such transactions will not take too much time, but will allow you to be reinsured.

The Main Difference Between 2D and 3D Payment Gateway 

In order to choose the most suitable merchant service, you need to find out the features of 2D and 3D transactions. Let's start with 2d payment gateway without otp and their key features:

• Processes payouts without additional security checks;

• You only need to provide your card number, expiration date and CVV to complete the transaction;

• Fast transaction without much hassle.

If we talk about 3D transactions, it has an additional level of security and the following key features:

• Performs more defended money exchanges;

• To make a transaction you need to confirm the charge with a one-time password;

• Takes a little longer than 2D.

To choose the most appropriate fee method, you need to decide if you are willing to sacrifice your security. For example, 2D transactions are also protected but have less reliability. You can use them for transactions with a small total amount. If you're paying for expensive items, then you'd better choose 3D Gateway. 

Another difference between merchant services is the parties involved. If we talk about 2D settlement, then the seller and the issuer are involved. 3D payment gateway offers a more complex structure where the payment initiator, seller and platform perform the transaction. Thanks to this scheme of work, you will be able to perform more secure charges. 

2D secure processes deposits after the buyer specifies required card information along with the CVV code. 3D shielded processes transactions after entering the card information about the card holder and additional confirmation via a banking application or a special link. What to choose is up to you. To make the right decision, analyze the dimensions secure payment and think about how much money you are risking.