Mastercard SecureCode

What is Mastercard SecureCode?

Mastercard SecureCode is an authentication service that protects bank cards from unauthorised withdrawals during online purchases with a unique security code. Basically, this is a 3D Secure technology under the Mastercard brand, which has multiple analogues in different card brands (for example, Verified by Visa).

The main purpose of the Mastercard SecureCode is to identify the cardholder when making an online transaction and prevent the card from unauthorised use and financial fraud.

Any registered Mastercard cardholder, as well as an online merchant who wants to enhance the security of their transactions, can become a member of the Mastercard SecureCode program.

How Mastercard SecureCode works?

Every Mastercard user can use additional Mastercard SecureCode protection to conduct secure card transactions. The whole authentication process takes a minimum of time for the user, but several processes are going on behind the scenes.

Let's find out how it works.

• When making an online payment on sites that support Mastercard SecureCode, the transaction request is redirected to the cardholder’s issuing bank.
• The issuer generates a special secure code and automatically sends it to the cardholder. This can be a separate PIN for online transactions, a password set by the user, or a one-time password.
• The customer enters the code on a separate encrypted page.
• After this, the bank's security service verifies the credentials and, if an incorrect code is entered, cancels the operation, preventing the unauthorised transaction.
• If the secure code is entered correctly, the customer is taken back to the merchant’s website and notified of a successful transaction.

At its core, Mastercard SecureCode service is very similar to the input of a card PIN when paying in a brick-and-mortar store or an ATM, but it is used for online transactions. This service acts as an additional layer of security that verifies the cardholder’s identity and helps to avoid fraudulent transactions if they have lost their bank card or the card data has fallen into the wrong hands.

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How do I set up Mastercard SecureCode?

For cardholders

For cardholders, activating the Mastercard SecureCode is a piece of cake. You just need to contact the bank that issued your card, and they will make it all set. Further, each time you pay for purchases or services in online stores participating in the program, your bank will prompt you to enter the secret code, which you will receive in the bank's application or by SMS. After verification and confirmation, the transaction will be conducted. The procedure for using SecureCode technology is as simple as entering a PIN code at an ATM.

By entering the correct SecureCode during the payment process, you confirm that you are an authorised cardholder. If an incorrect SecureCode is entered, the purchase will not be completed. Even if someone knows your bank card number, without a SecureCode, it will not be possible to complete a transaction. Since the code is unique and one-time, you don’t need to remember the number combinations or store the password in writing.

For merchants

If you want to add an extra layer of security for online transactions on your website, contact your PSP to ensure they support Mastercard SecureCode. If yes, you’ll be able to install the SecureCode plug-in and process transactions. It’s important to note that the Mastercard doesn’t require additional fees for using the SecureCode, but your provider may charge you to set it up.

Once you have set up the service, the card network requires that the SecureCode logo be displayed on your website. This way, you can inform customers that you are using additional authentication. Displaying the logo can play into your hands and increase your website’s credibility.

Who uses Mastercard SecureCode?

Businesses worldwide appreciate the high data protection level and convenience of Mastercard SecureCode technology, so most merchants already participate in the program. You can identify a company that uses the technology with a logo on its website. Since online payments aren’t always secure for both the buyer and the merchant, implementing a MasterCard SecureCode is a win-win. With it, your payments will be protected from any kind of fraud. Plus, the SecureCode may protect you from chargebacks under “cardholder unauthorised” reasons.