What is the primary function of EMV 3D Secure in online transactions?

The primary function of EMV 3D Secure in online transactions is to enhance authentication during the payment process to improve security and reduce fraud. By requiring an additional verification step, such as a one-time password or biometric verification, it verifies the identity of the cardholder. This dynamic approach helps to ensure that the transaction is being completed by the legitimate cardholder rather than a potential fraudster.

The focus of EMV 3D Secure is on protecting against fraudulent transactions, thereby reducing chargebacks for merchants. While encryption of cardholder data is an important aspect of payment security, it is not the main function of EMV 3D Secure. Similarly, limiting transaction fees and authenticating mobile devices are not directly tied to the primary objectives of the 3D Secure framework. It is specifically about enhancing the authentication of the user, making the option regarding requiring a password for identity verification the most appropriate choice.