Transacting online was not very popular among cardholders in India because of the constant fear about the safety of such transactions. Online payments were mostly done using credit cards as banks were wary of opening up debit cards due to obvious security reasons and lack of awareness around chargeback procedures and efficiencies.
The scenario changed after RBI mandated 2-factor authentication in India and the cards industry adopted the 3-D Secure methodology to ensure compliance. 3-D secure added an extra layer of security to credit and debit card transactions. It is an XML-based protocol and involves an additional validation step for online payments wherein the cardholder’s identity is authenticated by his / her card-issuing bank. The technology was first adopted by Visa under the name Verified by Visa and later by
MasterCard under the name SecureCode.