How to ensure a successful 3DS2 routing

How to ensure a successful 3DS2 routing

3DS2 provides a smoother payment flow than its predecessor, and across a greater range of devices. It has a more risk-based approach, providing issuer banks with more data points, allowing smarter decision-making.

If you are a merchant who processes digital payments within the EEA and has to comply with the PSD2 regulations, you are probably struggling with the ambiguity and complexity of adopting the new protocol and setting the right metrics for measuring how adoption has affected your conversions.

While the clock is ticking towards the mandate in January 2021, Nuvei experts are here to help you navigate this challenging time and provide you with the knowhow you need to ensure a smooth transition into the new era of payments.

Main differences between 3DS1 and 3DS2

3DS2 provides a smoother payment flow than its predecessor, and across a greater range of devices. It has a more risk-based approach, providing issuer banks with more data points, allowing smarter decision-making.

But along with that, the new protocol is far more challenging in its technical intricacy. Merchants could struggle to keep up with the dynamic learning curve even if they already process card-not-present transactions and are familiar with 3DS1. Brick-and-mortar businesses that are just now jumping on the digitalization bandwagon in the wake of COVID-19 will find it especially difficult to navigate. What are the key metrics for ensuring maximized conversion rates? How can they leverage exemptions for optimal balance between user experience, trust and safety?

How to measure your abandonment rates

With 3DS1, it was very easy to understand how many transactions were lost due to challenges raised by customers, but 3DS2 is a bit more sophisticated. At Nuvei, we have been exploring this issue for months, examining how it will affect our global network of clients.Our recommendation is to tune out all the background noise – simplify your KPI metrics by identifying when declines are caused by technical issues, and which are authentication issues.

We have identified three kinds of 3DS-related decline:

  • Authentication process started but authentication has failed / total number of authentications
  • Authentication process timeout / total number of authentications
  • Missing authorizations / total number of authentications

These simple to understand metrics are not, in reality, easy to apply to your protocols. Application requires a team of dedicated data analysts with thorough knowledge of EMVCo error codes, ECI, and authentication codes.

Luckily, Nuvei digital payments experts have already done the work for you.

A connection to Nuvei allows you to descope your 3DS2 compliance. Our platform is completely agnostic, adapting transaction routing as required to ensure maximum success – it can take care of authentication itself, or use a third party, and will choose the option most likely to get the transaction accepted by the issuing bank. Our platform is also connected to more than 100 acquirers worldwide, so all options are covered.

Furthermore, with our dashboards and comprehensive data reports, you will be able to compare your performance according to chosen parameters – 3DS version, issuing bank, country, payment method, device, and more. With this data, you can adjust your strategy to minimize churn rates and create seamless payment journeys for your customers.

These tools allow merchants to turn a difficult regulatory mandate into an opportunity by using our global payments hub as a local marketplace.

We offer integration options tailored to all sizes of business, from hosted payment pages to a Rest API. Feel free to contact me directly for assistance with this technical transition. Make sure that your business is compliant with EEA regulations by the end of 2020 so that you can focus on your revenue and growth.


Adi Cahana, Head of Back-Office Product, has worked at Nuvei (formerly SafeCharge) since 2004. Adi holds an MA in law and a BA in information systems and marketing, and is fascinated by the ongoing challenges of digital identity and payment technology. He manages a team of five who work on Nuvei products in the fields of risk management, identity authentication, back-office and recurring payments. He is also in charge of our UX team.

In his free time, Adi enjoys travelling, listening to music, and cooking with his family.

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