How 3DS works with MPI

With the economy shifting significantly towards digital payments, merchants and customers are conclusively becoming aware of legitimate frauds.

After all, merchants want to make sure that orders placed on their online store are legitimate and customers, their money is going to the real store for the goods they have purchased.

While a single click or experience of checkout or a single look at inconveniently long online checkout can cause customers to abandon the cart and possibly the web store, merchants are trying hard to retain the customers and increase customer loyalty and royalty.

This is where 3DS comes into the picture helping customers and merchants making secure transactions and identifying fraud.

3DS payments provide frictionless online payments. The customer’s identity can be authorized within the web store without disturbing the shopping and checkout flow.

What is 3DS?

3-D secure is a protocol to improve online transaction performance and to add an additional security layer for online credit and debit card transactions.

It is an XML-based technical specification that includes requirements and specifications for participants involved in transactions.

Also known as payer authentication this protocol prevents online fraud with online transactions.

3DS protects merchants from chargebacks and provides an extra security layer for both merchants and customers.

Three domains of 3DS

3DS(3 Domain Security) divides the authentication process into 3 domains as per the participants involved:

Issuer domain:  

Participants involved: Issuers, ACS, cardholders

This is the bank that issues a card to the cardholder for making payments for the purchase of goods and/or services.

Issuer domain can be further divided into 2 subsections

Issuer Registration Server (RS): responsible for managing the cardholder registration/activation and authentication process. This server is operated either by the issuer or ACS.

Access Control Server (ACS): it validates cardholder and sends digitally signed responses to merchants

Acquirer domain:

Participants involved: Acquirers, merchant, gateway

This is the bank where the merchant/seller’s bank account is held. This bank account receives the money from the buyer for goods/services sold by the merchant.

Interoperability domain:

Participants involved: Systems that connects the issuer and acquirer (operated by VISA, MasterCard, Rupay)

This is the domain that decides which network will be used. The networks that usually come into use are Visa, MasterCard, Rupay.

Know more about 3DS –

What is MPI?

MPI or Merchant Plug-In is a software module/platform that facilitates 3DS transactions and prevents merchants from credit card frauds.

MPI checks whether the credit card is enrolled for 3DS and verifies the cardholder with the issuing bank providing a better success ratio for online transactions.

MPI is part of the acquiring domain layer of 3DS. Basically, it authenticates cardholders by connecting card servers with merchant servers.

MPI is integrated with the merchant’s web store. It performs specific and required functions related to 3DS transactions.

Benefits of MPI

  • Hosted and Managed Solution
  • Better Success Ratio
  • Seamless Flow
  • Limits the acquirer role for Authentication
  • Tracking of Transaction at various levels
  • Payment Analytics

How 3ds works with MPI?

  • 3DS MPI allows merchants to integrate their online payment processing platform or website with 3DS protocol to facilitate authentication of cardholder and transaction.
  • When a customer initiates an online transaction by filling in the details on the merchant’s 3DS enabled website, the website uses the integrated MPI.
  • MPI calls the directory server to verify if the cardholder and the card are registered in the 3DS protocol.
  • The 3DS page asks the customer to authenticate himself/herself. This is done by entering a password or OTP.
  • The result of 3DS authentication along with transaction details is then sent to the payment processor and in turn to the acquirer bank.
  • The transaction is authorized or declined by the acquirer bank.

Lyra MPI

Lyra MPI provides the most robust 3DS plugin enabling secure online payments. Lyra MPI secures the information with SSL logic and provides multi-platform support.

Lyra’s MPI 3DS solution secure payments for

  • American Express
  • Visa
  • Visa Electron
  • V pay
  • MasterCard
  • Maestro
  • RuPay

Lyra’s 3DS MPI offers a multitude of features including, processing 2FA authentication, easy and uncomplicated merchant integration, real-time authentication.

Lyra web portal enables viewing 3DS related communications and Lyra also provides the issuer ACS URL whenever ACS is down.


  • Higher success rate and conversion rate
  • Maximum security with 2Factor Authentication 3DS transactions
  • Multi-currency and multi-lingual
  • Seamless integration with Payment Gateway
  • Fraud and Chargeback minimization
  • Maintains transaction integrity

Know more – contact us

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