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updatedAt: 2026-07-16T12:54:44.000Z
agentTools:
  projectIndex: https://documentation.lemonway.com/llms.txt
---

# Introduction

### What is 3D Secure v2?

> 👍 Did you know?
>
> 3D secure v2 is the latest iteration of the 3D secure protocol. It is a part of the finance industry’s drive to **improve payment security, improve customer experience, as well as reduce fraud**.

In the European Union, this drive has been largely prompted by extensive financial regulation, known as the Payment Services Directive (<Glossary>PSD2</Glossary>). This regulation requires merchants to apply SCA (Strong Customer Authentication) on transactions. This version of 3D Secure addresses the deficiencies of the previous version.

#### **Improvements include:**

* **Better experience** for users across multiple devices
* **Offers improved security** with emphasis on SCA with Two Factor Authentication (2FA) and biometric authentication
* **Frictionless support** where there is a low risk
* **Better risk analysis**, meaning that security is vastly improved
* **Non-Payment Authentication**

***

### Risk-Based Authentication (RBA)

Risk-Based Authentication (RBA) is applied by the card issuer to **determine whether a transaction is associated with a certain level of risk.** Risk levels are based on a set of criteria that include, but are not limited to:

* The transaction value
* User/Card behavioural history
* Transaction history
* New or existing user

***

### Frictionless Payments

RBA permits the use of **frictionless payments in some situations**. What does frictionless exactly mean? For example, a customer makes low-value transactions often, in the country where their card is issued, and on a device that is routinely authorized. The card issuer might determine these transactions as low-risk, therefore the card owner would not be subject to authentication.

#### **What are the benefits of Frictionless Payments?**

* Payment can be made quickly without customer verification, based on their risk assessment
* Greater user experience which leads to less abandonment during the payment process. A user is more likely to abandon a payment process the harder it is made for them to finalize a transaction.

***

### Non-Payment Authentication

**Non-Payment Authentication using 3D Secure v2 protocol does more to prevent online fraud.** Fraudsters continue to try to find ways to get access to credit and debit card data and hence there is still a significant online population that does not feel comfortable making online payments. What commonly occurs is known as customer checkout drop-off or transaction abandonment.

Essentially a customer who is about to purchase an item is confronted with a payment pop-up screen that requires them to enter personal card information.

**Non-Payment Authentication reduces drop off,** takes away the consumer stress and hesitation from the checkout stage of a purchase. This is done by shifting the 3D Secure verification away from the final payment stage to a different environment.