Who needs 3-D Secure?
In General, Internet based credit card transactions have been classified as 'card-not-present'
and 'no signature present'. In many cases, merchants were vulnerable to online shoppers
that denied execution of the transaction. In such cases of disputes, which are typical
for on-line frauds cases, the merchants where unable to prove that the actual cardholder
is the person performing the payment transaction at their websites. Integrating the 3-D Secure
technology to their website shopping system allow them to verify and authenticate the
true identity of the shopper in a real time.
How Does it work?
MasterCard® SecureCode™ runs from the merchants website and interacts with
both the customer and their card issuer. When your customer is checking out, a simple
pop-up box appears asking them to enter a private code that has been registered
with their bank. It passes the authentication value in your normal authorization request
procedures and, if approved, receives an authorization that binds that customer to
that transaction. This authentication value is transported using a Visa or MasterCard®
data field, the "Universal Cardholder Authentication Field" or UCAF.
Their bank then validates that code and provides you with a means of achieving a
fully verified transaction.
Charge backs Protection
Without the 3-D Secure technology Internet merchants are vulnerable to lost revenues
and costs associated with charge backs, and fines.
Merchants that interface their credit card processing process to the 3-D Secure merchant
plugin interface (MPI) technology are protected against most cases of fraud-related charge
backs. Customers can shop more safely and merchants can avoid charge backs resulting
from "I didn't do it" claims. Both VISA and MasterCard® have implemented
chargeback liability shift policy for these "I didn't do it" charge backs when
the transaction is authenticated through Verified By VISA or MasterCard® SecureCode™.
Fast and Easy Integration
Our on-line merchants and payment gateways service interface their systems with 3D Trust hosted
MPI by adding a link to a secured URL.
From here on, 3D Trust manage the entire authentication process. 3D Trust initiates
coordinates and engages in the authentication and validation processes between all parties
including the acquirer, the issuer Visa and MasterCard®. When the process is
complete, the session will be redirected back to your gateways.
The business case
for Internet merchants for 3D Trust
(the information
is based on data published on the MasterCard®'s
website.)
· 70% of e-commerce charge backs are "cardholder unauthorized"
due to cardholders saying, "I didn't do it." 3D Trust gives you a way to
reduce charge back and fraud costs.
· 70% of consumers surveyed by MasterCard® say they are concerned with
security and fraud issues. 3D Trust gives them more confidence.
· 73% say that enhanced security would influence their decision to purchase
online. SecureCode™ encourages online shopping.
· 61% are concerned that their credit card number will be intercepted by
"hackers".
· Accepting cards from other countries will be easier and less risky; 3D Trust
helps you move into new markets.
· Free advertisement on Visa and MasterCard®'s consumer website.
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3-D
Secure is a credit card processing authorization program implemented by Visa and
MasterCard built to reduce fraudulent purchases by verifying purchaser
identity during online transactions. The benefits if implementing 3-D secure
include a reduction in disputed transactions and charge backs and their
resulting financial expense. 
