3D Secure and Verified by Visa Prevent Cyber Criminals

Posted on: February 29th, 2012 - Written by: Day Dosch

3D Secure

Verified by Visa and 3D Secure for Etailers

AspDotNetStorefront supports our etailer merchants with proven – and preferred – fraud protection products

Online sales on November 28, 2011 – Cyber Monday – topped $1.25 billion making that day the biggest online spending day in history. With an increase of 22% over last year, online shopping will continue to grow – as will the number of cyber criminals planning attacks on shoppers. This makes a comprehensive fraud protection strategy for websites vitally important.

Verified by Visa and MasterCard SecureCode (3D Secure) have proven to reduce fraud by up to 40%.

3D Secure adds an extra layer of fraud protection for online stores. These products are mandated in Europe, Asia and South America and are a necessity for businesses expanding to overseas sales.

3D Secure is an additional system of payer authentication – validation that the online shopper is the cardholder. This added layer of security allows consumers to shop online with more confidence. It also allows merchants to reduce their fraud risk. In exchange for adding this feature to their web store, Visa and MasterCard provide merchants with chargeback protection, liability protection and lower interchange rates. Verified by Visa and MasterCard SecureCode allow card holders who have signed up to create a PIN number that must be included to complete the checkout process on any site that has enabled 3D secure.

AspDotNetStorefront has integrated Cardinal Commerce’s Centinel Thin Client into their MultiStore 9.2 software. Cardinal Commerce is a wonderful third party 3D Secure enabler. With this integration, 3D Secure customers have the option of simply turning on that feature in their AspDotNetStorefront cart and then signing up with Cardinal to enable Verified by Visa (VbV) and/or MasterCard SecureCode (MCSC) if they choose. There are potentially three scenarios an AspDotNetStorefront merchant might encounter when adding 3-D Secure to the payment processing for their site.

1. Their payment processor and/or payment gateway allows 3D Secure to be enabled with any third party 3D secure enabling software (i.e. Cardinal Commerce) because they do not offer that feature themselves.

2. The processor/gateway offers a 3D secure environment within their system but allows the merchant to choose to use the processor’s 3D integration or a different, third party enabling software company, like Cardinal Commerce.

3. The payment gateway or processor already has software to enable 3D secure and they have designated it proprietary to their merchant accounts and will not allow an AspDotNetStorefront merchant to use anything but that proprietary software.

AspDotNetStorefront merchants can find out their options from their payment gateways.

Currently 48 of the top 50 issuing banks will allow merchants to enable 3D Secure either with the banks own software or with a third party enabling software. Many banks have chosen to not develop their own enabling software, preferring third party enablers (like Cardinal Commerce) to integrate into their processing system.

Cardinal Commerce’s Centinel Thin Client is an Add-On for merchants to implement an additional piece of security for their customers. It does not replace a merchants fraud protection suite but is a part of it. Visa and MasterCard assume financial responsibility for any chargeback’s that occur, liability and control of the interchange rates that are charged.

While the adoption rate of card holders and merchants in the US has been slow, many countries overseas have mandates in place requiring the enabling of this additional security measure. Fraud rates show dramatic decreases in countries where 3D Secure implementation is wide spread. For merchants who wish to expand overseas, this is a very important component for boosting consumer confidence and conversion.

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