Mr D Food is working on a system that will allow it not to ask for 3D Secure authentication of credit card payments every time a user places an order. The head of Mr D Food, Devin Sinclair, told MyBroadband they are aware of the frustration 3D Secure is causing clients.
3D Secure is a two-factor authentication system used by Mastercard and Visa to combat credit card fraud. Their respective implementations of the system are called Mastercard SecureCode and Verified by Visa.
Many banks use a one-time PIN delivered by SMS for their instances of the 3D Secure systems. While simple when shopping from a PC, it can be cumbersome when transacting from a mobile phone.
There are two main problems with the two-factor system when on a smartphone:
- Messaging apps don’t always let you copy parts of messages.
- The 3D Secure pages provided by banks are not optimised for mobile devices.
Certain banks send an 8-character alphanumeric code, for example. If you are quick, you can type the code into the 3D Secure verification page as the message notification pops up.
If the notification vanishes before you are done, however, you will have to switch to your SMS app, remember the code, switch back to the app which needs the payment confirmation code, and type it in. Mr D Food competitor UberEATS doesn’t require clients to go through this step to make credit card payments, but Sinclair said this isn’t an option for them as they are a South African company. Uber’s payments go offshore.
He said that while 3D Secure may be cumbersome, it is an effective fraud mitigation tool. The trick is to make it easier to use, not to throw it out. “The immediacy of food makes it difficult to put traditional fraud detection in place that normal eCommerce players might be able to use,” said Sinclair.
He said they hope to have a system in place that does not force you to go through 3D Secure every time you place an order before the end of 2017.
Mr D Food also has an option to pay for your delivery in cash when it arrives.
Absa clients have reported that they are unable to shop online with their MasterCard credit cards, as the 3D Secure system is offline.
3D Secure is an authentication protocol used by banks and card companies. MasterCard’s 3D Secure system is called SecureCode. Shopping online with a credit card typically involves a bank’s 3D Secure system.
A one-time PIN is sent to a shopper’s phone by SMS, which is used to authorise the transaction. According to Absa clients, the bank’s call centre said the downtime was due to MasterCard updating the SecureCode systems. However, MasterCard told MyBroadband it does not host SecureCode on its servers.
Instead, it ensures that third-party providers’ solutions they provide to merchants, acquirers, and issuers such as Absa are compliant with its standards. “We are aware of an issue with Absa cardholders and that the bank is investigating this,” said MasterCard. “We can confirm that MasterCard’s network is stable and functioning normally and that no updates are being done.”
MasterCard said it could not comment on behalf of the bank.
Absa did not respond to requests for comment.
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