3D Secure vs PCI DSS: Key Differences, Similarities and Why They Matter

Digital payments have evolved rapidly, but with convenience comes the responsibility to protect customers and businesses from growing cyber threats. Two major elements in the payment-security ecosystem are 3D Secure and PCI DSS. Although they work towards the same broad goal, safer online transactions, they operate in very different ways. Understanding how they compare, where they overlap and why both matter is essential for merchants, service providers and any organisation accepting card payments.

What Is PCI DSS?

PCI DSS, or the Payment Card Industry Data Security Standard, is a global framework created by major card schemes to safeguard cardholder data. It sets out detailed requirements for businesses that store, process or transmit card information. These requirements include secure network configuration, encryption, access controls, logging, monitoring, vulnerability management and regular testing.

In other words, PCI DSS focuses on protecting the environment where payment data lives. Whether you run an online shop, a call centre, a subscription service, or you operate a payment gateway, if you handle card data in any form, PCI DSS applies to you. Compliance is not optional, card brands mandate it, and failing to comply exposes businesses to fines, reputational damage, data breaches and loss of the ability to accept card payments.

What Is 3D Secure?

3D Secure (3DS) is a security protocol specifically designed for card-not-present (CNP) online transactions. It adds an additional authentication step to confirm that the person using the card is the legitimate cardholder. This may involve entering a one-time password, authenticating through a banking app, or using biometrics such as fingerprint or facial recognition.

The “three domains” in the name refer to the merchant domain, the issuing bank and the payment network that facilitates communication. Modern versions, such as EMV 3DS, support frictionless authentication, where the bank approves low-risk transactions without interrupting the customer journey.

Unlike PCI DSS, 3D Secure does not secure stored or transmitted card data. Instead, it acts at the moment of the transaction, helping reduce fraudulent purchases and providing liability protection for merchants when authentication is successful.

Key Differences Between PCI DSS and 3D Secure

While both contribute to payment security, their scope and purpose differ significantly:

1. Purpose

• PCI DSS protects stored, processed and transmitted card data from breaches.

• 3D Secure verifies the cardholder’s identity during an online transaction.
  

2. Scope

• PCI DSS covers networks, servers, applications, physical security, processes and employees.

• 3D Secure covers the checkout flow and authentication process only.

3. When They Apply

• PCI DSS applies to any business involved in handling card data.

• 3D Secure applies only to online, card-not-present transactions.

4. Nature of Protection

• PCI DSS prevents unauthorised access to sensitive data.

• 3D Secure prevents unauthorised use of valid card details.

5. Obligation

• PCI DSS is mandatory for organisations handling card data.

• 3D Secure may be mandatory depending on region or regulatory frameworks, such as the EU’s PSD2. In other regions, adoption depends on card scheme rules and risk assessments.

Where They Overlap

Although PCI DSS and 3D Secure operate in different areas, they share several broader objectives:

1. Reducing Fraud and Financial Loss

Both standards aim to protect cardholders and merchants from fraud, albeit in different ways. PCI DSS secures the data, while 3D Secure secures the transaction.

2. Strengthening Customer Trust

Consumers expect online payments to be safe. Using both PCI DSS and 3D Secure demonstrates a commitment to robust security and helps build trust.

3. Meeting Industry Expectations

Card networks and regulators strongly encourage organisations to adopt a layered approach. Having both PCI DSS compliance and 3D Secure authentication aligns businesses with industry best practice.

Why One Alone Is Not Enough

Many organisations mistakenly assume that using 3D Secure eliminates the need for PCI DSS or vice versa. In reality, relying on just one creates significant gaps.

Using Only PCI DSS

PCI DSS protects card data, but it does not stop a criminal from using stolen card details on your website. Without 3D Secure, merchants face higher fraud risk and increased chargebacks.

Using Only 3D Secure

3D Secure confirms that the buyer is genuine, but it does not secure your systems. If card data is stored insecurely, you are still vulnerable to breaches, regulatory penalties and costly forensic investigations.

Only by combining both can businesses achieve comprehensive protection.

When Both Matter Most

Certain environments benefit greatly from implementing both PCI DSS and 3D Secure:

1. E-commerce and Subscription Platforms

Online merchants handling recurring payments or storing card tokens require PCI DSS, while 3DS helps reduce high levels of CNP fraud.

2. High-Value or High-Risk Transactions

Luxury goods, digital services and cross-border sales face higher fraud rates, making both security layers essential.

3. Payment Service Providers and Gateways

PSPs must maintain PCI DSS compliance across their entire infrastructure and support 3DS authentication to protect clients and end-customers.

Practical Considerations for Businesses

User Experience vs Security

Older versions of 3D Secure were notorious for causing checkout friction. EMV 3DS has significantly improved this with smoother, risk-based authentication. Merchants should choose PSPs that support modern 3DS flows.

Cost and Complexity

PCI DSS can be resource-intensive, depending on your card-data environment. Reducing your PCI scope by using tokenisation or hosted payment pages can simplify compliance.

Continuous Maintenance

Both PCI DSS requirements and 3D Secure protocols evolve over time. Ongoing monitoring, audits and updates are essential to remain compliant and secure.

Conclusion

3D Secure and PCI DSS play different but complementary roles in securing digital payments. PCI DSS focuses on protecting card data across systems and networks, while 3D Secure verifies the cardholder during online transactions. When used together, they create a strong, layered defence that reduces fraud, protects sensitive data and builds trust with customers. For any organisation operating in today’s digital payment landscape, understanding and implementing both is not just beneficial, it is essential.