3D Secure is a new technology for internet transaction processing prepared and adopted by both Visa and MasterCard. The branding within the card organisations is Verified by Visa and MasterCard secureCode.

The main idea of the system is very simple. The card issuer provides each cardholder with the possibility of establishing a special passoword used only for internet transactions. This password is entered by the cardholder in a special pop-up window at the moment of finalising the transaction with the merchant. This password is sent and verified by the issuer. When the verification fails there is no authorisation process and the transaction cannot be fulfilled.

The whole process lasts a bit more that 10 seconds. When the verification is positive the transaction goes trough the normal authorisation process (checking whether there are sufficent funds on the card account or is the card valid)

If anyone comes into possesion of the card number and expiry date or the card itself - the transaction will not be performed without the password. Each transaction conducted using the password will be treated by the issuer as a genuine transaction.