3D Secure is an added layer of security for online credit and debit card transactions. VISA initiated the 3D Secure program with the introduction of the Verified by Visa service. Similar services have also been adopted by MasterCard, under the name MasterCard SecureCode, and by JCB International as J/Secure. American Express introduced SafeKey to their UK and Singapore based merchants on 8 November 2010.
If a credit or debit card is enrolled in this program, the Client Selected PIN number (CSP) is required to complete the payment. This will reduce the risk of online credit card fraud, as no card information is passed on to a 3rd party. Only the cardholder can complete the transaction. This service is offered at no additional cost to the cardholder.
The merchant will also benefit from the service as the chargeback risk will be eliminated.
According to Valerie Dias, chief Risk and Compliance Officer at Visa Europe, in her report for 2011:
“48 per cent of e-commerce spending was covered by Verified by Visa (with 88 per cent of this amount being fully authenticated). As a proportion of total fraud losses, card not present fraud fell from 52 to 48 per cent”.
MasterCard issued a compelling business case for SecureCode, based on a consumer survey.
- 70% are very concerned with security and fraud issues
- 26% would purchase more frequently online if there were more security protection from a card
- 44% of those likely to use SecureCode would be likely to buy more online
- 66% of online consumers who do not make purchases online cited security concerns as a main inhibitor
Warning to the Cardholder: Every time you pass your credit card information to a 3rd party via a filled in form, fax, email or telephonically, you put yourself at risk of credit card fraud. Make sure that when making a payment for accommodation online, you make use of a secure payment site like www.booksure.com.