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3-Domain Secure (3DS) is an online payment protection protocol. It allows users to authorize cardless transactions when they make payments online. This mechanism allows users to confirm that it was the cardholder who made the transaction and not someone else. In some countries (EU) it is mandatory, while in others (United States) it isn’t.
The very definition of the 3DS system implies that the 3 domains (acquirer, payment system, and issuer) exchange information which allows for user authentication. After the cardholder enters all the necessary information such as card number and CVC2 the protocol redirects users to the 3DS verification page where they have to enter a confirmation code, usually sent by SMS. Alternatively, the protocol may not use two-factor verification, limiting it to background information.
3DS Secure verification is extremely convenient for users and payment service providers. The protocol allows no third-party services to be used for verification, making the user experience virtually seamless. Moreover, the 3-D Secure protocol provides several different verification methods, for example biometric, which is ideal for mobile devices.
Interchange fees vary slightly depending on the region. For example, in the United States, the fee averages approximately 2% of the transaction value. In the EU, interchange fees are capped at 0.3% of the transaction for credit card interchange fees and 0.2% for debit cards. Corporate cards have their own rules, up to no restrictions at all. This difference is due to U.S. and EU interchange fees regulations.
Card associations’ interchange programs change quite often, mostly in spring and fall. So the association tries to improve acceptance and increase card issuance. When they change rates new interchange programs are added.
No, interchange fees are charged from the merchant’s bank account for every customer transaction. Nevertheless, merchants usually include this amount in the final price of the product, so in the end, customers pay for them anyway.
Product Information
Obtaining the compliance certificate is a relevant task for any company that wants to do business and accept payments using bank cards. This includes companies from the financial industry, online stores, call centers, retailers, and in general all organizations that are providers of goods and services.
In total, there are two types of businesses that require PCI DSS certification:
The PCI DSS has several levels of compliance, both for merchants and service providers. Providers need to have Level 1 in order to provide services to merchants, which is why it is necessary for each modern PCI DSS-compliant payment gateway. Let’s take a closer look at compliance levels.
- Level 1 PCI DSS compliance;
- Web portal for merchants and advances providers admin back-office;
- On-demand integration services with unlimited providers;
- Ready-made integration with a Visa/Mastercard processing center for acquirers;
- Strong security for your merchants’ transactions;
- Efficient risk-management solutions to maintain sustainable business operations and prevent chargebacks;
- Multiple software delivery models to fit your business needs best.
ISO (Independent Sales Organization) is the term for Visa and Mastercard partnership organizations. These organizations may provide payment services on behalf of multiple member banks, as well as serve the cardholder’s customers and install terminals.
These terms are completely interchangeable and there is no fundamental difference between them. The term ISO is used in the Visa classification, while MSP uses Mastercard for its partner organizations. For the best customer coverage and quality of service, it is best to register as both an ISO and MSP.
Now let’s figure out how to become a registered ISO/MSP. It is worth noting right away that this process is quite complicated and takes some time. First of all, the organization must submit an application to the Card Association as well as comprehensive documentation. The list of documents includes financial statements, a detailed business plan, a complete list of employees, sales materials, and other important data.