Starting in April 2025, EC operators in Japan have been required to implement "3D Secure." Among those running a Shopify store, or considering opening one, many may have questions or concerns about "3D Secure."
"What is 3D Secure?"
"Does my Shopify store support it?"
"I want to know the benefits of 3D Secure"
Reading this article will resolve the questions and needs above.
3D Secure is a mechanism for preventing the kind of fraudulent credit card use that has become a growing problem in recent years. Supporting 3D Secure doesn't just protect users — it also benefits merchants.
This article carefully explains how 3D Secure works, its benefits, points to watch out for, and how to set up 3D Secure on Shopify. Please use it as a reference.
What Is 3D Secure?
3D Secure (formal name: EMV® 3-D Secure) is an umbrella term for identity-verification services provided by each international card network to prevent fraudulent credit card use in online payments.
In earlier online transactions, a payment could go through as long as you had the card number, expiration date, and security code. In this case, if a credit card was physically stolen or lost and ended up in someone else's hands, the risk of fraudulent use increased.
3D Secure addresses this problem by performing additional authentication beyond the card number, expiration date, and security code. In Japan, all EC operators were required by the Ministry of Economy, Trade and Industry (METI) to implement this 3D Secure by the end of March 2025.
Features of 3D Secure 2.0
As of April 2025, the mainstream version of 3D Secure is 2.0 (strictly speaking, the upgraded 2.2/2.3).
3D Secure 2.0 performs additional authentication at the time of online payment to confirm whether the person is really the cardholder, using methods such as one-time passwords or biometric authentication. It's also optimized for smartphones and mobile apps, enabling smooth payment.
The biggest feature of 2.0 is "risk-based authentication." Risk-based authentication is a mechanism where additional authentication is performed for transactions judged to have a high risk of fraud, while additional authentication is skipped for transactions judged to have a low risk. This judgment uses over 100 pieces of information — such as device information, purchase history, shipping address information, time of day, and a card's history of fraudulent use — and the card issuer makes an instant determination.
Thanks to this risk-based authentication, additional authentication isn't required on every single transaction, which prevents the extra hassle of authentication on every purchase. As a result, a smooth purchasing experience can be maintained.
The 3D Secure 2.0 Authentication Flow
Here's a brief explanation of the 3D Secure authentication flow.
- When the purchaser presses the "Pay" button on the ecommerce site's checkout screen, the card information is encrypted and sent to the payment network.
- The card issuer performs instant scoring to judge whether it's safe.
- Transactions judged safe are approved as-is, and payment is completed.
- Transactions judged high-risk trigger additional authentication, requiring things like a one-time password entry or biometric authentication.
- If authentication succeeds, the payment is finalized. If it fails, the transaction is automatically canceled, preventing fraudulent use and chargebacks before they happen.
3 Ways to Set Up 3D Secure on Shopify
To enable 3D Secure on Shopify, you need to connect the card issuer and your ecommerce site using a payment gateway (a service that mediates payment processing) that supports 3D Secure.
Automatically Enabled With Shopify Payments
If you enable Shopify's own gateway, Shopify Payments, 3D Secure is automatically enabled with no additional setup required.
Shopify Payments supports major credit card brands such as VISA, Mastercard, JCB, and American Express. Its payment processing fees are also relatively low compared to third-party payment gateways. Because of this, using Shopify Payments is recommended unless you have a specific reason not to.
Enabling Shopify Payments is easy. From the admin, select "Settings" > "Payments," then click "Activate Shopify Payments" under "Shopify Payments," which appears at the top.
Image source: Shopify
Adopt a Third-Party Payment Gateway
If you can't use Shopify Payments for some reason, or if you want to accept card brands that Shopify Payments doesn't support (e.g., Diners), you can enable 3D Secure by choosing a third-party payment gateway that supports it.
Representative examples include SB Payment Service and KOMOJU. If you're considering other payment gateways, check each one's official website for its 3D Secure support status.
Build a Custom Payment Method [Shopify Plus Only]
On Shopify's top-tier plan, Shopify Plus, you can also develop a custom payment method. However, this requires advanced specialized skills, so it will take significant development cost and time.
For large-scale ecommerce sites, cases where you want to integrate with existing in-house systems, or situations with special payment conditions, this is worth considering as one option.
Benefits of Adopting 3D Secure on Shopify
Here are the benefits you gain by adopting 3D Secure on your Shopify store.
Preventing Fraudulent Use
When you adopt 3D Secure, for payments judged high-risk, the card issuer requires a one-time password, facial recognition, fingerprint authentication, or similar. Since authentication can't be passed with just the card number and security code alone, this effectively prevents fraudulent use by third parties.
Reducing Chargeback Risk
A chargeback is a mechanism where a purchaser files a claim with the card company citing something like "a transaction I don't recognize," resulting in the payment being reversed and the money refunded. While this is an important mechanism from the standpoint of user protection, for the merchant it carries the risk of significant loss — not only the lost sale, but also fees incurred and unreturned merchandise.
For transactions where identity verification was completed via 3D Secure, the card issuer bears responsibility for the loss caused by fraudulent use (a "liability shift"). This greatly reduces the risk of the merchant suffering a loss even if trouble occurs.
Chargebacks are explained in detail in the blog article below. Please use it as a reference.
Preventing Cart Abandonment Without Hurting the Purchasing Experience
With 3D Secure 2.0, transactions judged "low-risk" complete payment without additional authentication. Because not every purchaser is asked to go through additional authentication every single time, it's possible to keep the extra hassle to a minimum without disrupting the flow of the purchase.
This lets you strengthen security while also maintaining a smooth purchasing experience, keeping the risk of cart abandonment in check.
Strengthened Security for Expanding Overseas
In Europe, a law called "PSD2" makes the adoption of 3D Secure 2.0 mandatory. In the US and across Asia as well, an increasing number of card companies are requiring the adoption of 3D Secure as a security measure.
Given this background, adopting 3D Secure ensures a level of security that can also serve customers overseas. It can also reduce trouble such as chargebacks and payment declines, which carry particularly elevated risk when expanding internationally.
Points to Note When Adopting 3D Secure
There are also some points to note when adopting 3D Secure. Since adoption is mandatory in Japan, be sure to understand and prepare for them properly.
Not Every Transaction Is Necessarily Authenticated
Even with 3D Secure enabled, it doesn't mean additional authentication is performed on every single transaction.
If the card issuer judges the risk to be low, additional authentication may be skipped. Keep in mind that adopting 3D Secure doesn't guarantee 100% authentication at all times.
Some Users May Abandon the Purchase Partway Through
When 3D Secure authentication is triggered, some purchasers may feel "I don't understand what to do" or "this is a hassle" and abandon the purchase. Note that adopting 3D Secure may cause a slight decrease in conversion rate.
To prevent this, it's effective to show a message before the checkout screen saying "authentication may be required," or to explain the purchase steps in advance.
Purchasers May Not Have Completed the Necessary Preparation
3D Secure is a mechanism for authenticating the cardholder themselves, but for that authentication to go smoothly, it's premised on the purchaser having already completed the necessary setup in advance.
For example, they need to have correctly registered with the card issuer the phone number or email address used to receive a one-time password. If this information is unregistered or outdated, authentication will fail and payment cannot be completed.
In particular, elderly users or those unfamiliar with online shopping are not uncommonly found to be missing this kind of preparation. Providing guidance to purchasers to confirm "whether the settings needed for authentication are in place" can help prevent trouble before it happens.
The Authentication Screen May Not Display Depending on the Smartphone or Browser Environment
Depending on a purchaser's smartphone or browser settings, the 3D Secure authentication screen may fail to display properly. For example, this can happen due to an old browser, security settings, or the effects of an ad blocker, preventing the authentication screen from opening correctly. In this case, the purchaser can't complete the payment.
To prepare for this kind of issue, it's a good idea to also offer payment methods other than credit card (such as carrier billing or convenience store payment).
Understand 3D Secure and Provide a Safe Purchasing Experience
This article explained 3D Secure — how it works, its benefits, points to note, and how to adopt it on Shopify.
To reiterate, since April 2025, 3D Secure adoption has been mandatory for EC operators in Japan. While there are some points to note, they can be addressed through guidance to users and by offering payment methods other than credit card in parallel.
Make sure you're properly prepared, and provide your customers with a secure and smooth purchasing experience.
