Quote:
Originally posted by netbilling
Hi All,
Verfied by Visa and Mastercard's solution is viable and Netbilling has been testing as well. However, unless it is required by the issuing banks that their cardholders use it, they won't. Why? Because if a cardholder know they have no liability if they do not use that pin code, they won't. For this to be successful, it must be mandnatory. Also, it won't do squat for rebill or misrepresented content as Chris stated above. This solution is by no means as great as some think it will be.... although I hope it turns out that way.
Be sure to come by booth #401 at Internext
Thank you, Mitch Farber
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Mitch:
Verified by Visa (?V by V?) gives us economic protection against chargebacks starting April 2003 if we are compliant and have installed the Merchant Plug In. We have. At that point, we have to attempt to verify. If we are the only one ?playing? so to speak, of the 3 parties involved (Merchant / Cardholder / Issuing Banks, through their Access Control Server) we still get the protection. Again, if the Merchant is compliant and attempts, the protection is there.
I think that Issuing Banks will require their cardholders to register sooner rather than later for this for 2 important reasons:
1. The Issuer can?t make the Merchant eat the charge if they are not V by V compliant.
2. Issuers can charge cardholders $2 or more per year for the ?service?. Actually they can force feed the charge.
AOL is promoting V by V. Wells Fargo, Chase, BofA, MBNA; all of the big Issuers are starting a push. The last time I checked, 10 million US cardholders were registered, a drop in the bucket, but better than nothing. In the EU this has been working for about 9 months and the Online Merchants are having great success.
So to my understanding the economics will drive Issuers to register, thus dragging cardholders. Then it is up to Merchants to spend the money, certify and use V by V. EPOCH is all over this. We think it will save our Webmasters millions a year.
Again, we also think that the ?It wasn?t me?? friendly fraud will go away for a time and then it will migrate, as the cardholders will likely figure other ways around the requirement to pay. EPOCH is working on a solution for that as well.
Chris
CEO EPOCH