How Verified by Visa works and why you should use it
Online shopping has long become an essential part of our lives, thanks to its convenience. However, unfortunately, it is not always safe. With the expansion of payment options, many fraudulent schemes have emerged that call for the use of exclusive security technologies.
You’ve probably seen pictures like these on the product payment page:
These signs show that your payment process is protected by the Visa/Mastercard company with the technology of 3D secure.
What is 3D-secure?
The technology of 3D-secure is a modern solution that allows you to maximize the security of payment transactions through online resources.
The service is designed for international payment systems. It’s a certified product that helps the cardholder to eliminate the risks of fraud on the Internet.
Thanks to 3D-Secure, each purchase in online stores must be confirmed by a one-time code sent to a mobile phone.
Such a security system is valid for settlements only on sites that support this system, as evidenced by the corresponding logos. On unverified resources that do not support the service, this program does not work.
3D-Secure technology provides additional security when paying for purchases and services on the Internet. The сustomer receives an SMS message with a one-time verification code, which confirms the identity of the customer. When making 3D secured payments, three parties take part:
- Issuer. A bank that issued a card to a client and is in charge of withdrawing funds and transferring them to the acquirer.
- Acquirer. A bank that serves an online store and accepts payment from the issuer.
- Payment system. A payment provider or other financial institution that provides funds.
As a result, the 3D Secure checking allows you to simultaneously identify the сustomer and inform him of the payment transaction. In this case, even if another person makes the payment, it becomes possible only with the knowledge of the cardholder.
The procedure for online payment for goods and services with a 3D Secure card
- The client prepares the amount and indicates the necessary details of the payment card on the company’s website.
- Automatically redirect to a secure payment page while simultaneously sending an SMS message to the client from the Bank with a one-time password provides.
- The сustomer indicates the password received in the message in a particular form on the Bank’s website.
- Automatically returns to the site of the enterprise and payment.
Does Verified by Visa hurt business?
The first version of the 3D security protocol was developed in 2001 by the Visa company. It Intended to improve the security of online transactions.
Despite the effectiveness in preventing online fraud, the 3-D Secure protocol did not find much support among card issuers and merchants due to instability, including in its early iterations, when a pop-up window forced the cardholder to leave the checkout payment page while making a purchase temporarily. However, many potential customers refused to complete the payment process.
One of the reasons for the low popularity of 3D Secure is also its limitations and the rather high cost of implementation. For example, the protocol does not imply an analysis of the type of customer’s device or the customer’s payment history. It forces the cardholder to enter a password even for small amounts for completely secure payments, such for example, utility bills.
The international payment system Visa announced that together with MasterCard, they would improve security measures for their services. That’s how Verified by Visa and MasterCard Secure Code came into being.
Today, Visa and Mastercard have significantly improved the security of their services. Consequently, they continue to work on consumer convenience.
The official page Visa says that Visa will gradually refuse static passwords and the process of their registration, confirmed by Verified by Visa. Moreover, Visa cardholders will be exempted from entering a Verified by Visa password when making purchases online.
The advantages of 3D secure
- Guaranteed security – payments are confirmed by a one-time password available only to the cardholder. It’s valid for 10 minutes for only one operation. There are three attempts to enter the password. If necessary, the client can request a new one-time password;
- Simplicity. It does not require a separate 3D-secure connection. The technology becomes available automatically upon SMS confirmation. No need to call the Contact Center to receive a password to confirm the transaction on online purchases.
- Convenience. It is not necessary to remember a one-time password. You receive every time you try to make a transaction to pay for goods or services via the Internet.
Businesses are also conducive to the 3D-secure. Requesting additional information provides an extra level of protection against fraud.
It ensures that you accept card payments only from trusted customers. Also, when using 3D-secure, the Liability Shift occurs, in which the responsibility for fraud even delegates from the seller to the card issuer.
What other methods to ensure data security exist?
- Many protocols exist when one is making a purchase online. Among them, SSL is an encryption protocol that safely transmits information. It is easy to determine whether a website has this protocol or not. You should look at the name of the address; the addresses of sites that use SSL connection protocol start with HTTPS. And these five letters are the first evidence that your information is confidential. It flows in encrypted form, and as a result, the security of such resources is high.
- Another security standard is a PCI-DSS certification. This set of rules gives recommendations on how to secure companies’ data. Any company that intends to make Internet payments must pass an annual compliance audit with these standards. They allow you to exclude the customers’ transition to a third-party website.
- Specialized anti-fraud systems also exist to protect payments from scammers. They monitor your financial transactions in real-time and look for unusual and suspicious ones. The system “studies” operations that occur in a country different from the one where the card was issued, track restrictions on the amount, limits, the number of purchases and the time they took place, and also accumulate other statistics.
The Bottom line
Nowadays, 3D Secure is one of the most advanced security technologies. But even such protection is not absolute.
The effectiveness of the work significantly depends on the points where this or that solution is applied. Many problems and security issues are generally assigned to the cardholder. After all, store owners want to save money.
Every company separately and individually provides security rules for online payment usage.
The official website contains all these rules. It is also conducive for customers to be aware of them. They will be able to protect themselves from fraudulent activities. And every purchase will be truly protected from unauthorized persons.