3DSecure is an additional security layer for online credit card payments. It is a method of payer authentication created in order to reduce online fraud Similar to entering a PIN in an ATM transaction. Visa developed a process called Verified by Visa and MasterCard a process called SecureCode (collectively referred to as 3DSecure), whereby the cardholder is required to verify themselves to their issuing bank at the time of purchasing online.
Merchants who implement 3DSecure will benefit from fraudulent chargeback liability shift. Usually the liability for chargebacks lies with the merchant. However with the implementation of 3DSecure services the liability for chargebacks moves to the issuing bank provided the merchant has attempted to authenticate the cardholder and follows appropriate procedures and regulations.