3-D Secure™ payer authentication, Verified by Visa™ and MasterCard® SecureCode™, is now available to e-commerce merchants.

Electronic retailers are presented with unique challenges when accepting cards for payment in the e-commerce environment. Unlike a face-to-face sale, there is no signed sales receipt and therefore, no definitive way for a merchant to dispute a cardholder claim that a purchase was not made. In fact, 71% of e-commerce chargebacks are due to cardholders denying that the transaction was authorized*. Consumers are equally concerned with security and fraud issues which make them hesitant to make purchases online.

Applied Merchant has teamed up with certified partner provider, CardinalCommerce Corporation to provide online merchants the ability to participate in the Verified by Visa™ and MasterCard® SecureCode™ programs. These two payer authentication programs are the most powerful fraud prevention tools available to online merchants and provide added security when accepting Visa and MasterCard payments. This alliance will aide online merchants in minimizing credit card fraud exposure and fraud costs while significantly increasing consumer confidence, and, in some cases, reduce credit card interchange fees.

How it Works

• The program is integrated on the merchant’s website.
• A cardholder actively enrolls their card with a password registered with their bank and shops on a participating merchant website.
• A window from the card issuer will prompt the cardholder to enter their unique personal code.
• The bank then authenticates the cardholder, approves the transaction, and provides the electronic retailer evidence of the online purchase. That order cannot be charged back to the merchant for any fraudulent reason.

The programs provide protection from “cardholder unauthorized” or “cardholder not recognized” chargebacks for fully compliant transactions. Not only will you receive protection from chargebacks, consumer confidence increases, making customers more likely to make a purchase on the website.

If the cardholder is not enrolled, the transaction will proceed as it normally would. Visa offers ‘zero-liability’ and still protects the merchant on cards not enrolled in the program. MasterCard offers guaranteed payment on all fully authenticated transactions.

For more information, please contact Applied Merchant at 800.675.6573

* Verified by Visa Report. Visa USA March 2003.