What is 2D high risk payment gateway?

Traditional 2D POS terminal are used by those types of businesses that do not have an anti-fraud filter to verify a transaction of a cardholder, that is, the card issuing bank does not send any message to the cardholder's mobile phone to validate the operation. 3D security protocol works in a way that when a customer makes an online purchase and introduces his debit or credit card details through the virtual payment terminal, the bank sends a message to his mobile phone to verify that the transaction is being made by him and not by another person without his authorization. Once the customer has validated the operation with his mobile phone, the merchant number is exempt from the responsibility of fraud and all responsibility falls on the card issuing bank.

The difference between a 2D and 3D payment gateways:

• 2D secure terminal does not send any validation message of the operation to the cardholder, the responsibility lies with the merchant in case of fraudulent use of the card.
• 3D terminal sends a message to the mobile phone of the cardholder to validate a transaction, in this case the responsibility for the transaction lies with the cardholder.
• 2D payment gateways are very difficult to obtain since the percentage of chargebacks generated due to low level of security is very high and banks generally have many impediments to grant one to a merchant. On contrary, 3D virtual POSs are easier to obtain since the anti-fraud filter verifies the ownership of the transaction lowering the possibility of a chargeback. In general, banks are more predisposed to facilitate 3D than 2D.
• 2D and 3D payment gateways can be used by high and low risk businesses. That is, we can find the 2 types of payment methods in the market. As we mentioned above the high risk 2D payment terminal will be much more complicated to contract than a 3D secure.
• It takes less time to process a transaction with a 2D secure payment method than through 3D protocol, since there are no extra verification steps that slow down the purchase process.

If you have a low-risk business, we recommend you to apply for a 2D payment gateway. Generally the bank may refuse to provide it at first but if you have the economic capacity to pledge a rolling reserve or offer the bank guarantees to minimize the fraud risk, the entity could activate it without problems. In the case of having a high-risk business, we recommend that you first apply for 3D secure payment gateway and once you have a credit history at the bank, talk to your payment agent again asking to review your account and change it to 2D terminal.