For consumers and cardholders, PSD2 provides them with more control over their financial information. One of these is the inclusion of Strong Customer Authentication (SCA) for added security when making payments.
These new regulations bring with them 3DS 2.0, enabling users to identify themselves with:
- Two-factor authentication
- Out of Band (Redirection to cardholder's banking app)
- And one-time passwords.
Mastercard Identity, or ID Check in short, is a standard that enables authentication that meets the requirements of PSD2 directives. Basically it is the improved version of the formerly known Secure Code.
ID check is an identification that is based on a one-time password that provides increased safety against unauthorized card use when paying online. At the time of purchase, by using Mastercard ID Check, users verify that they are entitled to pay with that particular card.