3D Secure System

3-D Secure is an XML-based protocol to allow authentication of cardholders of credit card
companies in epayment transactions. The 3-D Secure protocol was developed by Visa to improve
the security of Internet payments. It was adopted and is offered with the service name
Verified by Visa and MasterCard SecureCode. The main difference between Visa and MasterCard
implementations resides in the method to generate the AAV (Accountholder Authentication Value):
MasterCard uses UCAF (Universal Cardholder Authentication Field) and Visa uses CAVV
(Cardholder Authentication Verification Value). The protocol has also been adopted by JCB
International under the service called J/Secure.

Description and basic aspects of the protocol

The basic concept of the protocol is to tie the financial authorization process with an online
authentication. This authentication is based on a 3 domain model (that is the 3-D in the name).
The three domains are: Acquirer Domain (the commerce), the Issuer Domain (the bank issuer of
the credit card) and finally the Interoperability Domain (Worldwide credit card and support).

The protocol uses XML messages sent over SSL connections with Client Authentication (this ensures
the authenticity of both peers, the Server and the Client, using Digital Certificates).

Each Issuer could use any kind of authentication method (the protocol does not cover this) but
typically, a password-based method is used, so to effectively buy on the Internet means using
a secret password tied to the card.

In order for a Visa or MasterCard member Bank to use the service, it has to operate a compliant
software that supports the latest protocol specifications. Currently the specifications are under
version 1.0.2. Previous versions 0.7 (only used in Visa USA) and 1.0.1 have become redundant and
are no longer supported. MasterCard and JCB have adopted version 1.0.2 of the protocol only.
Once compliant software is installed, the member bank will perform Product Integration Testing
with the Payment System Server before it rolls out the system. Click to more info!!!