Last updated on May 6th, 2022 at 05:42 am
2D payment gateways allow customers to purchase goods and services online without requiring them to perform a security check or use OTPs to verify purchases. They can pay using their card number, expiry date, and CVV number, and the transaction is completed without requiring any security authentication.
Even though it’s a convenient way to make payments, it’s not secure as opposed to the systems where authentication is required to verify payments before transactions can go through. Reputed payment gateway providers in India tend to avoid this technology altogether and opt for better technologies that come with added security layers in place. This helps them protect the everyday-banking consumers from identity theft or fraud cases.
The absence of authentication and validation of payments leaves a lot of grey areas in terms of security since payment-related information is at risk of being exposed to hackers while customers transact online. Thus, customers are less likely to trust and transact in stores that utilize 2D payment gateway systems due to the related security risks.
2D Payment Gateway Vs 3D Payment Gateways
Unlike 2D payment gateways, where customer security is at risk due to the lack of authentication, 3D payment gateways, on the other hand, are far more secure – thanks to the additional security layers in place. It ensures the safety and security of the customer’s personal and financial information from falling into the hands of prying fraudsters and offers better control and visibility of transactions happening over the payment gateways.
How Does a 3D Payment Gateway Work?
Whenever a customer transacts on a 3D payment gateway, it’s done so by following a secure process as listed below
- Once the customer has decided on paying for a product or service, they need to enter their card information.
- Once the information has been entered, the customer is greeted with a secure pop-up window.
- A unique authentication code is shared with the customer through SMS and email.
- The payment can only be processed once the correct authentication code has been entered by the customer.
- Upon furnishing the correct authentication code by the verified user, the transaction is complete, and the user receives a notification of the same.
Disadvantages of 2D payment Gateways
As you may have figured by now, 2D payment gateways have their shortcomings!
- Volatile and less secure due to lack of additional security layers
- Risk of financial data being exposed to hackers
- Increased risk of fraudulent transactions online
Advantages of Choosing a 3D payment gateway over 2D payment Gateways
- Reduced risk of fraudulent transactions due to additional layers of security
- More trusted among merchants and customers
- Results in higher sales and repeat purchases due to increased loyalty and trust
Even though independent merchants still use 2D payment systems for selling goods and services on their online stores, 3D payments gateways are increasingly preferred by major eCommerce sites due to their increased layers of security, resulting in more secure transactions for the customers.
Which one should be your go-to solution?
By now, you must have decided as to whether you want to go for a 2D payment gateway or a 3D payment gateway for your online store. In our view, even if you are a small business owner, you should invest in a 3D digital payment system in India to cope with modern-day challenges that come as a pack and parcel of online transactions.
The resulting security and safety of a 3D payment system will make your online store more secure and robust when customers transact online and instil a sense of confidence in them, knowing that their information is protected and won’t fall into the wrong hands.
In a nutshell, if you want better security while giving your customers an overall seamless experience throughout their entire user journey, 3D payment systems should be your go-to solution for conducting online business if you want better customer acquisition and retention over your entire lifetime online store.
However, before integrating a payment gateway system, always ensure that you do thorough research to find out the best payment provider in terms of overall cost-effectiveness, feature sets, and support in case you ever face any issues!