3DS Authentication: A Quick Guide for UK Businesses

Ever had a customer's online payment fail at the final hurdle, just as they’re about to complete a purchase? That extra security check is called 3D Secure (3DS), and while it can sometimes interrupt the checkout flow, it plays an important role in reducing fraud and protecting transactions.

For UK businesses, failed payments and fraud risks can directly impact revenue and customer trust. Understanding how 3DS authentication works—and why it’s required under regulations like SCA—can help you improve payment success rates while staying compliant.

In this guide, we've explained what 3DS authentication is, how it works step by step, and why it matters for UK businesses. You’ll also learn how it can help reduce fraud, manage chargebacks, and support compliance with payment regulations.

We've also explained how Wise Business can support businesses managing domestic and international payments through its multi-currency account: Wise Business.

Register for Wise Business ✍️

Key Takeaways

Discover Wise Business 🔍

What is 3D Secure (3DS)?

3D Secure, or 3DS, stands for 'Three-Domain Secure'^1,2. It's a protocol designed to provide an additional layer of protection for online credit and debit card transactions.

The "three domains" are:

• The merchant's bank
• The card scheme (like Visa or Mastercard)
• The cardholder's issuing bank

It works as an additional verification step to help confirm that the person using the card is the cardholder.

How Does 3DS Verification Work?

When a customer makes a purchase on your site, the 3DS process runs in the background. Your payment gateway sends a request to the customer's bank via the card network^1,2, where the transaction risk is assessed.

Low-risk transactions may be approved without additional steps. If further verification is required, the customer is prompted to confirm their identity.

The Purpose of 3DS Authentication

The primary aim of 3DS is to reduce online fraud. Adding a verification step can make it more difficult for unauthorised users to complete transactions using stolen card details, which may help reduce fraudulent activity.

Benefits of 3DS Authentication for UK Businesses

3DS can support transaction security while also helping businesses manage fraud-related risks and customer trust.

Enhanced Fraud Prevention

3DS can help reduce card-not-present fraud by requiring additional verification. This may involve access to a device or banking app linked to the cardholder.

Reduced Liability for Merchants

When a transaction is authenticated through 3DS, liability for certain types of fraudulent chargebacks may shift to the card issuer. However, this can depend on the specific scheme rules and circumstances.

Increased Consumer Confidence

Customers may feel more confident completing transactions when they see additional verification steps, as this indicates that safeguards are in place.

Compliance with Regulations

In the UK and Europe, Strong Customer Authentication (SCA) is required under PSD2^1,2. 3DS is one method commonly used to help meet these requirements.

Understanding the 3DS Process: A Step-by-Step Journey

Step 1: Initiating an Online Purchase

The customer enters their card details at checkout.

Step 2: The Merchant's Authentication Request

The payment processor sends transaction details to the card network and requests authentication.

Step 3: The Card Issuer's Role in Verification

The issuing bank evaluates the transaction using available data^1,2.

Step 4: The Customer's Authentication Challenge

If required, the customer completes a verification step^1,2, such as:

• Entering a one-time passcode
• Approving via a banking app
• Using biometrics

Step 5: Transaction Outcome and Confirmation

The result is sent back through the payment chain, and the transaction is either approved or declined.

Navigating 3DS Challenges and Ensuring Smooth Transactions

Understanding Common 3DS Failures

Failures may occur due to incorrect inputs, outdated contact details, or temporary bank issues. These are typically resolved through the issuing bank.

Tips for a Better Customer Experience

Provide clear messaging about potential verification steps and offer guidance if payments fail, such as checking entered details or contacting their bank.

Manage Your Business Payments More Efficiently with Wise

For businesses handling payments across borders, managing funds efficiently can be just as important as accepting them.

Wise Business offers a multi-currency account that can help you send, receive, and manage international payments.

With Wise Business, you can:

• 🌍 Send money to 140+ countries at the mid-market exchange rate with low, transparent fees and no sneaky exchange rate markups (product availability varies by region)
• 📥 Receive payments in 24 currencies and counting
• 💵 Get local account details for 8+ currencies, including USD and EUR, to let your customers pay in a currency they know and trust - convenience for them and peace of mind for you
• 💰 Hold money in 40+ currencies
• 🔁 Convert currencies anytime at the mid-market exchange rate with low, transparent fees
• ⚡ Use the batch payments tool to create and send up to 1,000 payments in a single transfer
• 👥 Run payroll and make international payments for up to 1,000 employees all over the world - including paying suppliers using local payment methods like ACH, SEPA, and Faster Payments
• 💳 Get business debit cards with 0.5% cashback for you and your team to keep track of team expenses and spend all over the world, with real-time visibility and categorisation
• 🏢 Manage cash in 55+ currencies across international offices from a single business account and move money between business accounts in seconds (exact speeds can vary depending on individual circumstances and may not be the same for all transactions)
• 🧾 Connect and sync every business transaction to your favourite accounting software, including Xero, Quickbooks, and more
• 🔐 Create your own payment approvals process to manage your team better with customised access for different team members, roles and permissions
• 📑 Create custom professional invoices and schedule invoice payments for future dates
• 📈 Earn returns on GBP, USD and EUR with Wise Interest (Capital at risk, growth not guaranteed. Your money is at risk if governments default or interest rates go negative. Visit https://wise.com/gb/interest/ to find out more)
• 🔗 Create payment links and QR codes to get paid easily
• ⚙️ Automate payouts with the Wise API (comes with 24/7 customer support, a sandbox account to test integrations, API tokens, and clear documents on how to implement and make the most of our API)

Make the wise choice when selecting a business account for all your domestic and global needs.

Be Smart, Get Wise.

Register for Wise Business ✍️

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

FAQs

What is the difference between 3DS1 and 3DS2?

3DS2 is a newer version that allows more data to be shared for risk assessment, enabling more transactions to be approved without additional steps^1,2.

Are there any fees associated with 3DS authentication for businesses?

Some providers include 3DS in standard fees, while others may charge separately.

Sources:

1. A Complete Guide to 3D Secure Authentication - takepayments
2. 3D Secure Authentication Explained - GoCardless
3. Strong Customer Authentication Readiness - Stripe Docs
4. 3D Secure Guide - Adyen
5. A Guide to 3D Secure - Dojo

Sources last checked on 30 March 2026