You surely don’t have to. Many online merchants are yet to implement this additional security feature, and still accept credit cards through their online merchant account.
MasterCard SecureCode, was, surprisingly enough, initially developed by Visa, and offered as a service to Visa customers under the commercial name: “Verified by Visa” (also known as VBV). Nowadays “3-D Secure” or in short “3-D” is a generic term which relates to: VBV, MasterCard SecureCode and J/Secure (JCB International 3-D commercial name).
3-D Secure adds, through an XML based protocol, another authentication step for online processing solutions. Shoppers generate a code (the “SecureCode”…) known only to them and their issuing bank, which must be entered to finalize an online transaction on sites which implemented this additional security step.
Merchants implementing 3-D Secure, benefit from chargebacks reduction (chargebacks previously initiated due to: “unauthorized transaction”), yet might see a volume decrease due to transaction failures, or simply lower conversion, directly related to the additional step required…
At the end of the day, at least until 3-D Secure will be imposed by the associations, every merchant needs to make the decision, whether to implement 3-D Secure or not. It has a lot to do with the nature of your online business and the chargeback rate you are facing today.
Gidi Argov, Founder and CEO
www.CreditCardProcessing-r-us.com
Tags: 3-D Secure, Credit Card Processing, MasterCard SecureCode, Merchant Account, Verified by Visa (VBV)
Hi, we just added your article to our site! Thanks!!!
Thanks for the useful information. Can you see the 3-D as a component that complements other fraud prevention measures or as a replacement? How would you balance the need to see more conversion with the ever-growing number of fraud attempts?
Dr. Gips – The 3-D is by all means another component further enhancing a fraud prevention process.
A merchant can surely try to balance the need to increase conversion, with the growing need to fight fraud, by selectively launching the 3-D Secure feature on pre-defined scenarios only.
Such scenarios can be easily configured, and will normally be related to the nature of products sold, total value of order made and billing address/shipping address conflicts.
This post was mentioned on Twitter by education4army.
If you do implement a VBV solution, don’t forget to report the ECI result to your acquirer.
As funny as it may sound, we have implemented a VBV solution and were processing cards which were “Verified by Visa” (ECI=5).
We kept getting chargebacks and as we are not supposed to, we resubmitted those, yet resubmission was declined!
When we further investigated the issue, it turned out we failed to report the VBV and ECI result to our acquirer, and the transactions were processed without a VBV protection… Turns out that implementing the MPI by itself and getting the VBV page is not enough! Just so you know…
Hi Tal – thanks for sharing!
Sounds like you forgot to report the CAVV.
For the rest of our readers:
CAVV = Cardholder Authentication Verification Value
ECI = Electronic Commerce Indicator
MPI = Merchant Plug-In
When implementing an MPI, the ECI and CAVV results must be captured and submitted with the transaction to the acquirer, for the merchant to benefit from VBV chargeback protection.
You don’t have to use 3-D Secure, yet it’s about time you do…
If you wish to minimize your chargeback rate, if you wish to be able to fight chargebacks received, if you have a real interest in fighting fraud, if you want to minimize fraud costs and wish to see an improvement in your bottom line – it’s time you add VBV & MC SecureCode to your processing workflow…