Payer Authentication at eComTechnology
Payer Authentication, also known as Verified by Visa® (VbV) and MasterCard SecureCode™, are security protocols developed by Visa and MasterCard that allow consumers toshop online more securely. Visa and MasterCard also give incentives to eCommerce businesses that enable these programs by providing chargeback protection and lower interchange rates.
Simply put, Payer Authentication is validation that the online shopper is the cardholder. Merchants participating in the programs are helping to fight identity theft and consumers become more inclined to continue shopping at these secure websites.
- Reduced Chargebacks - Merchants utilizing Payer Authentication are afforded more protection against chargebacks
- Interchange Discounts - In some cases merchants experience lower interchange rates
- Lower Fraud Screening and manual review costs - Merchants spend less time and money reviewing suspicious transactions
- Expand Internationally - Merchants can increase business in foreign markets with less risk
Online Payment Fraud to Rise During Holidays
Attempts by criminals to steal payment card information to commit online fraud are likely to rise during the upcoming holiday shopping season, according to ACI Worldwide. The recent shift to more secure chip cards for in-store purchases is likely to increase fraudulent attempts on transactions online. ACI showed fraud rates by volume for transactions that do not involve swiping a card have increased this year, with one out of every 86 transactions a fraudulent attempt compared with one out of 114 transactions in 2014. Fraud attempt rates have increased by 30 percent compared with last year, as consumers shop with more devices online and card issuers are slower to shut down accounts after fraudulent activity. "2015 is likely among the riskiest season retailers have ever seen," says ACI's Mike Braatz. ACI expects a 28 percent increase in online and in-store attempts at fraud this holiday season.
From "Fraud Rates on Online Transactions Seen Up During Holidays: Study"
Reuters (11/17/15) Bose, Nandita