3D secure is a system where, after you enter your credit card details on a merchants site, you are redirected to a site hosted on the bank servers where you enter a OTP sent via SMS to complete the transaction.
However, this system is only used by sites hosted in India and a few other countries. Doesn't this render the system completely ineffective (and possibly make the situation worse than not having it at all)? I can't really figure out how this reduces the risk of fraud in any way for credit cards. (Debit cards cannot be used internationally online, so it does reduce the risk there.)