“Verified by Visa” is an online security application developed by Visa for purposes preventing fraudulent transactions. The application requires a card holder to protect their card with a PIN number, which would ordinarily be asked during the checkout process for authentication purposes. “Verified by Visa” is also commonly referred to as “3d Secure” simply involves the card holder registration of their card and subsequently choosing a PIN. It’s this PIN that will be requested every time you make an online purchase. The PIN request is required to curb unauthorized card usage, giving a card holder more control over their credit card.
It should be every merchant’s intention and objective to provide online shoppers with a secure environment to conduct their transactions. A secure shopping environment translates to more customer confidence in the merchant’s web portal, leading to increased sales and profits to any merchant that is participating “Verified by Visa” merchant. Higher volume e-commerce merchants want to add this feature to their gateway/shopping cart, which promotes security and gives consumers an extra sense of security while shopping.
Verified by Visa service offers significant benefits to merchants, some of these benefits include:
- Reduced cases of fraud
- Reduced liability
- Reduction in operating expense
- Marketing opportunities
With the adoption of the Verified by Visa service, the identification and confirmation of online shoppers would be made possible in real time. This identification would be made possible through the request of a password therefore ensuring that only the card holder can use their card online.
This service by Visa results in reduced cases of fraud simply because merchants have the opportunity to authenticate the card holder’s identity during the transaction. The PIN requested by Verified by Visa, makes it certain that the card holder is indeed the card owner hence eliminating the occurrences of fraudulent transactions.
Visa does offer guaranteed payments to participating Verified by Visa merchants on certain common card disputes. This is made possible by the fact that Verified by Visa has improved security features that has eventually led reduced liability among participating merchants. Its Visa’s prediction that a Verified by Visa participating merchant could cut their fraud related expenditure by 50 percent or even more.
Ordinarily online merchant incur a significant amount of costs associated to fraud, customer service and credit card disputes. The reduction of fraud cases has a direct bearing on the merchant’s costs. With disputes whether they are successfully handled, there is still the element of costs associated to handling and processing the dispute. With “Verified by Visa” a merchant reduces fraudulent transactions; hence merchants eventually end up reducing their operating costs.
Participating merchants enjoy the marketing opportunities this service presents. 3d Secure assures customers to a merchant’s website and assures that their transactions are conducted in a safe and secure environment. Visa usually features Verified by Visa participating merchants in its websites, the listing by Visa of Verified by Visa business also serves to market their businesses.
Although Visa is known for its fraud protection, Verified by Visa takes this security to a much higher level by asking the cardholder for a PIN number or a password just before completing the checkout process. The PIN request by Verified by Visa actually puts a stop to fraudulent transactions and unauthorized card use before they are committed. Verified by Visa service is specifically designed to online shoppers with a safer environment by giving them more control over their web transactions.