Debit and 3-D Secure 2.0


New specifications for 3D Secure have been released as the industry looks to combat the next fraud hurdle, card-not-present transaction losses.

Mercator Advisory Group releases new research on preventing fraud in card-not-present debit transactions.

Author: Sarah Grotta
Published on: December 28, 2016

Consumers are altering their buying habits to include more online and mobile transactions. At the same time, adoption of the EMV security standard by both card issuers and merchants is expanding rapidly in the United States, making counterfeit card fraud at the physical point of sale much more difficult to perpetrate. These two market changes are causing fraud to shift to the card-not-present environment.

Mercator Advisory Group’s new research note, Debit and 3-D Secure 2.0, provides background on the market shift toward e-commerce and m-commerce and discusses the enhancements of 3-D Secure 2.0, particularly improvements to the cardholder experience.

“Issuers now need to turn their attention to card-not-present losses and the new version of 3-D Secure to counter the assault. The 2.0 solution is much improved from the initial version and an important part of an overall cardholder verification strategy. Although debit doesn’t experience as much fraud volume as credit, it is critical to incorporate tools like 3-D Secure 2.0 in consideration of the disruption that debit card fraud can create for an account holder,” comments Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.

This report has 11 pages and 5 exhibits.

Companies mentioned in this document include
: EMVCo, MasterCard, Pay Pal, and Visa.

Highlights of the research note include:

  • Estimates for e-commerce and m-commerce in the United States
  • Debit card-not-present volumes and fraud levels
  • A high-level process flow of a 3-D Secure 2.0 transaction


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