The following is taken directly from PASA’s FAQ

“3D Secure, also known as Verified by Visa, MasterCard SecureCode or Amex Safekey, is a method of authentication security, which was developed by the Card Schemes to enhance the security of online transactions for all cardholders. It allows only the cardholder to use the card when shopping online.

The three domains referred to in “3D” Secure consist of the cardholder to issuer domain, the merchant to acquiring bank domain and the interbank domain.

Very simply, the system authenticates the cardholder before any transaction can take place, by diverting the cardholder to the browser of the bank that issued the card. The bank then requests a password or One Time Password/PIN (OTP), from the cardholder, which is typically sent to their mobile phones, which will prove that the person undertaking the online transaction is the authenticated cardholder and therefore entitled to use the card.”

Because of the risk associated with online credit card transactions, Netcash insists on the implementation of 3D Secure in order to mitigate that risk.