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What Are 3D Secure and CVV Codes? Why Are They Essential for Secure Online Shopping?

What Are 3D Secure and CVV Codes? Why Are They Essential for Secure Online Shopping?

Security is paramount when it comes to online shopping. We've gathered everything you need about 3D Secure protection, which enhances payment security.

#Financial_Literacy

4 min read

Last Updated: Tem 26, 2024

Table of contents

What is 3D Secure?

How Does 3D Secure Work?

What is CVV?

Frequently Asked Questions

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The volume of e-commerce transactions increases each year. According to a report by the Ministry of Trade, e-commerce volume in Turkey grew by 115.15% in 2023, reaching 1.85 trillion Turkish liras. In a world where internet shopping occupies such a significant space, payment security becomes increasingly critical.

Papel Blog illuminates important aspects of payment security, such as 3D Secure and CVV/CVC codes.

What is 3D Secure?

"Three Domains Secure" is an identity verification protocol developed to enhance payment security for online purchases. Card issuing companies might refer to it under different names, such as "Verified by Visa" or "Mastercard SecureCode." 3D Secure validates transactions between the cardholder and the website digitally.

How Does 3D Secure Work?

3D Secure adds a step to verify the cardholder's identity during the payment process. Here's how it works:

Payment Step: When you complete your shopping and proceed to payment, you are asked to enter your card details.

Redirection: You are then redirected to your bank's 3D Secure verification page.

Verification: The bank sends you a one-time password (OTP), usually via SMS or mobile app.

Password Entry: You must enter this password on the verification page.

Confirmation: If the password is correct, the transaction is approved, and the payment is completed.

What is OTP?

OTP stands for One Time Password. It is used in some transactions to increase security levels and perform identity verification, thus ensuring mutual trust between the business and the user.

The OTP can be sent via SMS, mobile app notification, or email. After the code is sent, the user must correctly enter this code into the verification field within a specific time frame. Otherwise, the transaction must be repeated.

Is 3D Secure Necessary?

Using 3D Secure in online payments is important for several reasons under different headings:

Fraud Protection
Customer Trust
Legal Compliance
Reducing Chargebacks

Fraud Protection

If personal data is compromised, card details might end up in the hands of malicious entities. In such a scenario, it becomes difficult for a thief to bypass 3D Secure verification as the system uses not only card details but also verifies identity via the cardholder's phone or mobile app.

Customer Trust

3D Secure provides an additional layer of security, making customers feel more comfortable shopping online.

Legal Compliance

3D Secure has become a security standard in many countries and payment platforms. Banks and payment providers use this protocol to offer legal protection and reduce liability.

Reducing Chargebacks

3D Secure helps prevent fraudulent transactions with its identity verification steps, reducing the number of chargebacks from unauthorized expenditures. This can decrease the financial losses that merchants may experience.

Sites Without 3D Secure

While many firms and e-commerce platforms selling over the internet prefer 3D Secure payments, some operate without it. While this may increase the speed of the payment process, removing the security screen can put payment and shopping security at risk.

How to Activate 3D Secure

What should you do if you do not know whether the 3D Secure feature is activated on your credit, bank, or virtual card when paying on a site with 3D Secure?

You can open your card for 3D Secure transactions through the call center or online banking channels of your bank or financial institution.

What is CVV?

CVV stands for Card Validation Value, a three-digit security code used on credit cards, debit cards, or virtual cards to create an additional barrier for remote payments. Like other sensitive information, the CVV code should not be shared and must be carefully preserved by the user.

Where is the CVV Located?

On physical cards, the CVV code is located in the middle of the back. On virtual cards, it is located where other card details are found.

CVV codes may occasionally appear under different names, such as CVV1, CVV2, CVC, CVC2, and CID. Regardless of the terminology, the primary role of this code is to contribute to payment security.

How to Use CVV Code?

Using the CVV code is quite simple. You are asked for your card details when you reach the payment step in online shopping. At this stage, you can enter the CVV code by looking at the back of your physical card or from your virtual card details to complete the purchase.

Frequently Asked Questions

1- What does 3D Secure mean?

3D Secure, abbreviated from Three Domains Secure, means "three-dimensional security" and is used as an additional security barrier to protect card details in internet payments.

2- What does CVV code mean?

CVV, abbreviated from Card Validation Value, can be translated into Turkish as "card validity code." It appears as a three-digit number among card details.

3- What is an OTP code?

One Time Password, known as OTP, is used as part of payment security measures.

4- Should the CVV code be shared?

Sharing the CVV code alone may not constitute a security risk. However, we still advise that all card details, including the CVV code and the OTP received during payment, should not be shared with anyone.

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