Urgent for credit cards! Cardholder Authentication (MasterCard SecureCode and Verified-By-Visa)

Cardholder Authentication (MasterCard SecureCode and Verified-By-Visa)

From August 2009 Shamanic-Extracts & RBS WorldPay will be applying MasterCard SecureCode and Verified by Visa to all Maestro, MasterCard and Visa payments we process on your behalf, through the WorldPay payment page.

What is Cardholder Authentication?

The UK’s Card Association warned that following the introduction of Chip and Pin in the face to face environment, fraud would be forced elsewhere, making Card Not Present (CNP), and online in particular, more vulnerable.

In response, MasterCard and Visa launched online Cardholder Authentication (3D Secure) providing similar security to the ‘chip & pin’ used in face to face situations. MasterCard SecureCode and Verified by Visa enable cardholder's identity to be authenticated through entry of a password/PIN. They are proven methods of reducing online fraud and increasing shopper confidence when purchasing online.

The advantages to merchants from 3D secure

• Proven technology to reduce fraud: 3D Secure is designed to help authenticate the identity of the cardholder through the entry of a unique password/pin. This is a different approach to risk tools such as CVV2 (also important), which help to identify whether the person making the payment is in possession of the card. The ability to authenticate the identity of the cardholder is an important fraud prevention measure, which can help to stop fraudulent transactions being made over the internet using stolen card details.
• Protection from financial liability: Merchants can find that a high proportion of chargebacks are caused by the cardholder denying that they authorised a transaction (Mastercard estimates that some 60% of e-commerce chargebacks are “cardholder unauthorised”). It can be difficult to appeal successfully against this type of chargeback without evidence of authorisation. An advantage of 3D Secure is that the financial liability switches from the merchant to the card issuer for disputed payments of this type – this is known as a liability shift. This is a significant benefit to merchants that can result in a reduction in chargebacks and disputes for some types of fraud. A merchant can even benefit from this protection when the Issuer or cardholder is not participating.
• Higher shopper confidence: Market research has shown that the use of 3D Secure can increase shopper confidence and encourages online shopping. In research conducted by the Gartner Group on behalf of Visa, the average e-commerce transaction was found to increase by 52% from €73 to €138 when processed using Verified by Visa.
• Free service: This service is provided free of charge by RBS WorldPay.

Sign up whenever you are given the option whilst shopping online to Verified by Visa or MasterCard SecureCode.
Increasingly when you go to pay online with your card you will be given the option of signing up to these schemes that involve you using a password. By signing up you will prevent a fraudster using your card details on participating sites as they will not know your password.