Some credit card companies use a system called 3-D Secure (3DS) that adds an extra step to transactions that are carried out on the Internet. Visa and MasterCard tout their security, but researchers are questioning their efficacy. .....

... Systems built on 3DS are better known by their brand names, which include Verified by Visa and MasterCard SecureCode.

Security researchers say that these validation systems—which are used by over 200 million cardholders—suffer from serious security deficiencies. Although the failings of 3DS and its lack of conformance with best practices are well-documented, it has still been widely adopted by online retailers because it allows them to deflect the liability for fraud back to the credit card companies.