MasterCard® SecureCode launches this month

[Brown Bear]

Using the latest technology, SecureCode helps protect you against the unauthorized use of your MasterCard® card while shopping online. It's easy to enroll and use.

Step 1: Register Your Personal SecureCode
Create a personal SecureCode that only you know. Once your SecureCode is set, the program works automatically.

Step 2: Shop at Participating Merchants
Look for the MasterCard® SecureCode? logo at participating online merchants.

Step 3: Confirm Your Identity with SecureCode
Every time you enter your MasterCard® payment information at a SecureCode merchant, a box will pop up automatically from your issuer prompting you for your SecureCode. Within seconds your identity is confirmed and your purchase complete. The merchant never sees your SecureCode.

[lEricPl]

Humm...

Mastercard is letting you use a password now.

Thrilling.

[BRISK]

Originally posted by lEricPl
Humm...

Mastercard is letting you use a password now.

Thrilling.

Visa is launching their version of this too, I'm not sure when though, sometime soon I think. Should be interesting to see how it affects sales and chargebacks.

[gothweb]

Won't credit card thiefs just go to sites that don't support this?

[Dax]

Originally posted by BRISK


Visa is launching their version of this too, I'm not sure when though, sometime soon I think. Should be interesting to see how it affects sales and chargebacks.

It is called " Verified by Visa " and it works the same way... And I think it will affect chargebacks the same.. all they have to say is.. I signed up for onely one month.

[DannyW]

If it means surfers no longer have an easy way of saying "it wasn't me" , that's very good for chargebacks.

[gothweb]

Originally posted by Dax


It is called " Verified by Visa " and it works the same way... And I think it will affect chargebacks the same.. all they have to say is.. I signed up for onely one month.

100% of the chargebacks and refunds I have seen on my sites were for the entire membership. People do this to get free porn. I think this could help a lot, and I hope CCBill will have a good implementation of both the Visa and MasterCard versions.

[ZoiNk]

What these are supposed to do is cut down people's ability to chargeback... at least that is what ppl at the 3rd party billers have been saying for the past year.
ZoiNk

[BJ]

can you do recurring with this? I thought not.

[HairToStay]

You can not do rebilling with either of these programs.

Unfortunately not all credit card processors support this new anti-fraud measure. When I asked the security department of MBNA (a major credit card company) how I could obtain a 9-digit pin code, I got a "huh?" response, he put me on hold, and came back and said he had never heard of Verified by Visa

[AdultNex]

Anyone know if this works for debit/ATM cards?

[Dax]

Originally posted by HairToStay
You can not do rebilling with either of these programs.

Unfortunately not all credit card processors support this new anti-fraud measure. When I asked the security department of MBNA (a major credit card company) how I could obtain a 9-digit pin code, I got a "huh?" response, he put me on hold, and came back and said he had never heard of Verified by Visa

Yes, you can use it on rebills.. because they only ask for the pin for the first time purchase.. every purchase after that with that same biller -if recurring- goes through. Just like if I was to use my visa to pay my phone, gas or electricity bill.

Here is more info:
http://www.usa.visa.com/personal/sec...f3_/index.html

If MBNA doesnt know about it.. they are on crack!

[HairToStay]

Originally posted by Dax



Yes, you can use it on rebills.. because they only ask for the pin for the first time purchase.. every purchase after that with that same biller -if recurring- goes through. Just like if I was to use my visa to pay my phone, gas or electricity bill.

Here is more info:
http://www.usa.visa.com/personal/sec...f3_/index.html

If MBNA doesnt know about it.. they are on crack!

I called Visa International when I first heard about this to ask a million questions, and they themselves told me rebills would not be allowed IF using Verified By Visa IF you wanted the no-chargeback protection.

The merchant (me) never sees the 9-digit PIN code that must be used EACH time. If you use a gateway, the number goes right to the bank (I process manually so can never use this system) and in order to rebill and have the no-chargeback protection, you need that 9 digit code each time. Since we don't have it, we can't use it to process, hence you can't rebill ....

The no-chargeback policy (according to Visa) means that a customer can not say "I did not make this charge" because in order to make EACH charge, they must use that 9-digit PIN code. This is only known to the customer (godnose what happens if some morons writes it down and someone sees it and uses it). If a bank approves a charge that has used the PIN code and a chargeback is issued, the bank that approved it eats the chargeback, NOT the merchant.

However, you can still have chargebacks if you sell tangible goods and are nailed for non-receipt of merchandise.

I had to call MBNA again today, asked the customer service rep about SecureCard and they had no clue, and I asked for security. Security had no clue either, and when I mentioned that it was VERY bad business for a major credit card company to not know about Secure Card or Verified By Visa, I was informed that it must be "too new" for them to know about

[Kimmykim]

Verified by Visa does not preclude rebillable transactions. There is a process that has to be followed and disclosure that has to be included. Nothing really different than what we do now, making the words fit with what the cc's want them to say.

Bank of America's been testing Verified by Visa for at least a month that I know of... it's no big deal if you refuse to include your card in it, and I did notice one thing -- there is nothing prominent or visibly noticeable in the basic terms and sales pitch for it that makes it plain to consumers that they will lose the ability to charge back if they use this system with their cards.

Talk about taking a page out of our book.

[rnicey]

The technical specs for VbV do allow for recurring. Whether it will be allowed/supported and chargeback protected immediately is anyones guess.

What basically happens is you send Visa/dir. service the dollar amount, description and minimum number of days between rebills and number of rebills. This is then presented to the customer for verification by the issuing bank/Visa dir. service. If they enter their password and accept those terms, they're bound to it. Doesn't mean they can't chargeback for other reason codes (like lack of service or quality), but no more 'I didnt do it'.

As I said, anyone's guess if it'll work like that in practice, and as I preview my message I see Kimmy beats me to the punch. I'll let you know when I have it in place.

[Kimmykim]

Nice to see your crew in Phoenix, wsb

[NETbilling]

Hi,

Public acceptance will be the key to making this successful for merchants. The good news is that I spoke in depth to Visa and Mastercard at the ETA show in Vegas last week and both issuers are very excited (they even looked me in the eye) about their versions and helping to reduce internet fraud...

By helping to reduce initial sale fraud, the merchants, gateways, and IPSPs will surely benefit, even if it does not happen for recurring charges.
Let's hope they really make the push to the issuing banks to require pin issuance with new cards.

We have Visa 3D in place and are testing it internally. Mastercard secure code and Visa 3D are both right around the corner.

Mitch

[psyko514]

rnicey and kimmy are both correct...
but Visa is still a long way from implementing VbV. Visa has been "testing" it for about two years now.

here are all the issuing banks which support it:
http://www.usa.visa.com/personal/sec...ing_cards.html

MNBA is not listed there.

[Kimmykim]

I think that once the consumers realize they've lost their ability to charge back by going down this road the new cards that are issued to replace all the ones that are chunked in the trash by disgruntled cardholders will not end up with passwords ;)

[psyko514]

Originally posted by Kimmykim
I think that once the consumers realize they've lost their ability to charge back by going down this road the new cards that are issued to replace all the ones that are chunked in the trash by disgruntled cardholders will not end up with passwords ;)

Personally, I don't think a "non-password" version should be offered. All Visa/MC cards should have an online password, same way they have a PIN.

[HairToStay]

While intially I agree with mandatory PIN numbers being required, for people, like myself, who process manually into a terminal -- we'd be screwed

Since the merchant is not supposed to see the PIN number, we can't process VbV or SC manually.

I tried online gateways and besides the lack of security features, you don't get nearly as much information as you do on the slip that comes out of the terminal (for the 2 gateways I tried, anyway).

MBNA may not support it yet but ya'd think they would at least KNOW about it

[Kimmykim]

Originally posted by psyko514


Personally, I don't think a "non-password" version should be offered. All Visa/MC cards should have an online password, same way they have a PIN.

um, sure thing. Maybe CVV2 has worked too well ;)

[Juggernaut]

There is an even simpler way of doing this sort of security.

E-Mail confirmation done by the bank that issued your card.

You get an e-mail before any transaction gets approved, you click it if you want the transaction to go ahead. This will tell the bank that your card is being used by you, which will mean you're assuming responsibility for the transaction.

Your e-mail is generally not public knowledge, even so, you could use a personal account to have this type of mail sent to you.

The only problem I see, is that the merchant will not receive approval until the e-mail confirmation has been sent to the client by the bank, with a time limit on clicking the approval.

If someone manages to get both your personal e-mail account and all of your credit details, you're either being scammed hardcore, or you're an idiot.

[wimpy]

YES!!! I've been waiting for this, I think it means NO MORE CHARGEBACKS.

[helis]

Visa has had this going in australia for a month or two now...i was gonna sign up then i remembered what the fuck do i care if someone uses my CC that's what a charge back is for hehe

damn the man!

[psyko514]

Originally posted by HairToStay
MBNA may not support it yet but ya'd think they would at least KNOW about it

You'd think so, but you'd be surprised. Call any Canadian bank and ask about VbV. Most likely, only CIBC will know what you're talking about since they're running a pilot project. Some people at TD (myself included) will also now. But that's about it.