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Difference Between 2D and 3D Payment Gateway: Which is Better

what is the difference between 2D and 3D Payment Gateway

Knowing the difference between 2D and 3D payment gateway gives a merchant the upper hand in the decision-making of secure payments for consumers.

To make a cashless purchase at a store, you can either swipe your card at the retailer’s POS terminal (point of sale) or, using NFC technology (near-field communication), wave or touch at the credit or debit card contactless terminal. The terminals are no longer necessary with the rise of internet enterprises. Instead, a service merchant known as a payment gateway is required to facilitate payments. So, understanding the difference between 2D and 3D payment gateway is very important. The online retailer must install a security mechanism to protect the information and electronic funds transferred during transmission. Payment gateways that use these security technologies are called 2D or 3D security gateways. The links can either be incorporated into the merchant’s website or application, or they can be used for the merchant’s payment service.

What is a Payment Gateway?

A payment gateway enables online retailers to accept debit and credit card payments from their customers through high-tech software. This system captures payment information from clients, such as credit/debit card information or passwords for e-wallet services and encrypts this sensitive data before transmitting it to the processor and banks. The payment gateway implements a security system and compliance process that enables robust data encryption to ensure data security during transmission between parties in the transaction circle. Payment gateways can be either 2D or 3D.

What is a 2D Payment Gateway?

The full form of 2D PG is the 2 Dimensional Payment Gateway.

In the 2D secured payment gateway, the customer must provide card information such as the card number, expiration date, and cardholder name. After that users must enter the security code or CVV (card verification value), located on the back of the card.

When this information is entered accurately, the transaction is authenticated. The processor’s payment gateway requires no further identification or validation. Though the functionality of the 2D Payment Gateway without OTP (One Time Password) makes it less secure.

Challenges associated with 2D Payment Gateway

Even if the 2D Payment Gateway incorporates a few distinct tiers of security, using it is still regarded as a potentially hazardous choice. It is exposed to the theft of credit card information as well as fraud involving payments.

If your card is lost or stolen, anyone with access to the information can use it to make electronic bill payments or utilise online payment apps. You won’t have any say in how the transactions are handled.

What is a 3D Payment Gateway?

The full form of 3D PG is the 3 Dimensional Payment Gateway.

A 3D Payment Gateway is just a payment gateway that employs 3D Secure technology. This solution offers an additional layer of security to your website’s financial transactions, including purchases made on high-risk or E-Commerce websites. It was developed to allow consumers to confirm a credit or debit card transaction before it occurs. This method of payment is compatible with both Visa and MasterCard.

The procedure is pretty straightforward and looks like this:

  • Consumers choose a product or service to purchase and enter their credit or debit card details.
  • Assume you have activated 3D secure payment as a merchant. In this situation, clients will be prompted with a pop-up window, and their bank will request that they provide a unique authentication code to authenticate their identity. This code, which is only valid once, is typically given via SMS to the consumer’s mobile number.
  • If the code entered is correct, the consumer’s payment will be accepted, and the transaction will be finished.
  • Consumers should remember that they have three chances to verify a transaction before it is cancelled and their card is put on hold until they contact their issuing bank.

SabPaisa Payment Gateway is the first API-driven unified payment gateway in the world supporting multiple payment methods, including credit cards, debit cards, wallets, UPI, etc. SabPaisa is highly secure with industry-leading tools & standards and is PCI-DSS & SSL certified.

3D Payment Gateway Advantages

If you haven’t already considered them, there are numerous advantages of a 3D payment gateway on your website. The most obvious ones include.

  1. Reduction of fraud allegations: Having a 3D payment gateway reduces fraud allegations.
  2. More robust protection: An additional layer of protection prevents the misuse of sensitive data.
  3. Customer confidence: When clients are aware of the security provided by a 3D payment gateway, they have more confidence in conducting business with your website.
  4. Sales rise: Safer shopping increases the number of purchasers and the frequency of purchases.
  5. Better service: Because fraud and chargebacks are going down, merchants are happier with how their business transactions turn out.
  6. International transactions: Merchants are more confident in their ability to do international business.

Pro Tip: Consider applying for an International Merchant Account if you are an international merchant.


what is the difference between 2D and 3D Payment Gateway  

What is the difference between 2D and 3D Payment Gateway?




2D Payment Gateway


3D Payment Gateway






When an online payment transaction takes place, the 2D payment gateway asks the customer to enter their credit/debit card information, including the card number, card holder’s name, expiration date, and CVV. After that, the payment gateway will process the transaction without requesting an extra password or security code.



When shoppers make credit/debit card payments, the 3D payment gateway processes the transaction with SCA (Strong Customer Authentication). Customers are needed to enter their payment card information, including the card number, card holder’s name, expiration date, and CVV as well as an additional verification step known as OTP/3D Secure, to increase the security of online checkout payments.

Customers who shop online are protected from fraud and cybercrime.





Involved Parties


2 Parties are involved.

1. Customer

2. Merchant

3 Parties are involved.

1. Client

2. Merchant

3. The payment environment system, includes the internet, server, and other components.


Payment Authentication



Yes, through OTP

The Risk: (for businesses and customers)



Chargebacks/Fraud Ratio




Why does a Merchant prefer 3D PG over 2D PG?

You may wonder why a retailer would want this additional buying barrier on their website. The solution is straightforward. Data breaches, fraud, and chargebacks are on the rise and will continue to increase as technology advances and people become more adept at hacking techniques.

Cybercriminals have unprecedented access to consumer information. They get information like SSNs (Social Security Numbers), addresses, and personal information to use credit card information.

It is particularly inconvenient for high-risk merchant account holders, who must continually reassure their consumers that their information is secure and anonymous.

Therefore, what can high-risk merchants provide their customers to reassure them? A 3D payment processor. With such an offer, customers can be assured that their information is secure. This level of protection will encourage even the most hesitant buyer to purchase on your website.

In addition to protecting the customer, this has many benefits for the retailer as well. It enhances the possibility that a customer will purchase on your website. It also benefits the merchant by decreasing the number of disputed transactions, fraud allegations, and chargebacks.

Best of all, it doesn’t have much of an effect on checkouts or cart abandonment, and it hasn’t been shown to make people less interested in buying a product.


We have covered every facet of a 3D Payment Gateway and its benefits. Before deciding to contact your payment processor about this option, it is in your best interest to explore several fundamental questions. Consider whether this additional authentication step is required for your sort of business (for example, we highly recommend it for high-risk merchant accounts), Think about the additional costs that may be associated with this option and also your payment processor’s level of expertise with this form of payment processing. If you continue to believe that this is a good fit for your firm, you can set it up with your payment processor.


1. Are merchants permitted to store card information for recurring payments on their websites?

Ans: Under the new RBI standards, companies will not be allowed to store card information. However, the required limited information may be stored according to the applicable standards in order to track transactions. Customers must submit their information each time they make a transaction or choose tokenization.

2. Is it required for Indian companies to have a 3D payment gateway?

Ans: Yes, Indian businesses that work in the Indian market are required by RBI rules to have a 3D payment gateway due to the 3D secure payment feature.

3. Is the 2D payment gateway protected?

Ans: Although the 2D payment gateway has a lower decline rate because it doesn’t use OTP or biometric authentication. It means that payments are processed faster, and fewer of them fail. But the 2D payment gateway is nearly unsafe for purchasers. Since the checkout procedure just requires credit card information and a CVV, fraudsters can quickly hijack the card information and make unauthorised payments.

4. What are chargebacks?

Ans: When a cardholder discovers a fraudulent transaction, they notify their issuing bank. If the dispute is upheld, a refund is applied to the customer’s credit card. Chargebacks are intended to protect consumers from fraudulent transactions.

5. How long is the OTP available for completing the transaction on a 3D payment gateway?

Ans: The OTP is a six-digit number sent to your email address and registered phone number which, when entered on the payment gateway page, allows the transaction to proceed. It is valid mostly for 10 minutes and can only be used once.

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