3D-Secure is quite popular among cardholders, but not many the purpose of it. 3D Secure or in its full-term, 3-domain secure is a payer authentication. It serves a security protocol to prevent fraud in transactions whenever you use credit and debit cards online.
3D Secure is created by Visa and MasterCard under the name that is only verified by Visa & MasterCard SecureCode. The payer authentication is a three-part process, so there are three different parties involved in this process. This includes the issuer (Visa or MasterCard), the acquirer and the interoperability domain (such as payment system).
The benefits of 3D Secure is that it reduces the chances of fraud. It helps to make online shopping more safe and easy. As for a merchant, customers will stay loyal as they have gained trust and confidence in shopping. Therefore, they will tend to spend via online shopping.
Despite its benefits, there are also some restrictions. Not all cards are involved in the program authentication payer scheme and it does not restrict chargebacks to happen but reduces the cost of fraudulent chargebacks.
3D Secure should be viewed as additional protection provided for the cardholders. This is in case if a fraud case happens, it is very likely that liability will shift to the acquirer as 3D Secure acts as an authenticated barrier. The retailers are shielded against misleading chargebacks since the liability is transferred.