3D Secure: Verified by Visa Important Facts
Online fraud has been around since eCommerce started. Payment network Visa has established their very own security program to protect account owners and their transactions — Visa Secure (formerly Verified by Visa), a 3D Secure feature. This program is meant to make online purchases not only safer, but also faster and more convenient.
The Visa Secure is designed to look after the security of both customers and online merchants. Given that it greatly reduces chargebacks, merchants benefit greatly in Visa Verified transactions by getting an extra authentication factor with every transaction that go through their site.
So, what does it really mean to be Visa Verified? This guide will walk you through important facts you need to understand about Visa 3D secure and how it affects your internet merchant account.
What is Visa Secure?
As mentioned, Visa 3D Secure is a security program initiated by Visa for the security of its clients. While other 3D security programs automatically ask for a One-Time Pin (OTP) when transacting with a participating merchant, Verified by Visa does not always do this. This is because there are two versions of Verify by Visa. Some customers might encounter an OTP verification prompt while others may not but nonetheless, there is still a verification process happening on the backend.
VISA 3D Secure Version 1.0 versus 3D Secure Version 2.0, what are the differences in the program?
3D Secure 1.0
- Authentication is done through a third-party pop-up screen that most shoppers mistake as a malicious attempt of stealing credit card information.
- Improved 3D Secure 1.0 version is now in an in-line window.
- OTP is required in all transactions regardless of amount (big or small).
3D Secure 2.0
- The second version has an improved usability in comparison to the first version.
- Better usability for several types of devices.
- Analyses risk of transaction based on the acquired data.
- Only high risk transactions are prompted for authentication.
Now you might think, how does the system know whether a transaction is genuine or fraudulent? Thanks to its improved risk analysis, the Visa 3D Secure version 2.0 considers the following data to analyse whether a transaction should be flagged or not.
- The amount of purchase made
- Geo location of transaction
- Signature of device used
- IP address used to make the purchase
- Email address
- Purchase history
- Merchant history
- First time purchase from the merchant
How to activate 3D Secure Visa
The 3D secure Visa registration isn’t the same for both versions as well. The previous Verify by Visa version will require users to register manually. However, in the second version, customers do not need to opt-in anymore. As long the customer’s issuing bank is a part of the 3D Secure 2.0 program, the cardholder’s card is automatically enrolled to the program. Keep in mind that registering to 3D Secure 2.0 does not cost anything and that customers will never be charged by Visa unless stated by their bank.
If there is no authentication prompt on the cardholder’s end, how will this affect online merchants?
How does Verified by VISA work for Merchants?
Most updates on banking transactions are designed to protect the cardholders, but the vulnerability of cyber fraud is not just limited to them. As a matter of fact, 60% of small-scale businesses go out of business in just a period of six months after a cyber-attack. This is a fact noted by the UPS Capital, and the reason why Verified by Visa 3D secure is a huge help to merchants. Since the 3D Secure 2.0 program only needs an OTP in high risk transactions, customers don’t have to go through extra steps during checkout.
Online shoppers tend to abandon their cart when it takes too long for them to complete their transaction. But with the background authentication of Verify by VISA 2.0, customers’ transaction time is kept short without sacrificing the security of their purchase. This results to a reduced number of cart abandonment and led to bigger revenues.
Merchants should call their account provider to make sure that their eCommerce store is Visa Verified. Visa recommends that a merchant’s site should support both version specifications to cater to all Visa cardholders.
What does Visa Secure look like?
Whether in desktops, laptops, mobile phones, or other digital devices, the Visa Secure Badge will always be present for participating eCommerce sites. A visual description of a Verified by Visa legit badge includes the official Visa logo sitting atop a blue box with the word “secure” on the center.
What does Verified by VISA mean?
This means that with this program, the transaction has an added layer of protection which guarantees merchants that the cardholder themselves is actually the one making the purchase. Likewise, it protects cardholders from fraud.
VISA Secure FAQs?
- Is Verified by Visa applicable to credit and debit cards? Yes, it is applicable to both debit and credit cardholders. Take note that debit users don’t need to enter their ATM pin to complete the transaction.
- Is a new VISA card required for this program? No, cardholders don’t have to secure a new VISA card. Their existing card can be used as long the issuing bank is a part of the program. To know whether their financial institution is a part of it, cardholders should contact their bank.
- Is this security program always available for all online transactions? Yes, it automatically applies to all online purchases of participating merchants. Depending on the version supported by the merchant’s site, a prompt for verification may appear during checkout.
- Is Verified by VISA the same as VISA Secure? Yes, it is the same security program but with an enhanced user experience for the benefit of both cardholders and merchants.
- What to do in the extra verification step? Instructions are provided in the screen which cardholders can then follow to complete the process. This is done for the purpose of verifying the identity of the one making the transaction.
- What is the purpose of the Visa Secure logo? This is to give cardholders the peace of mind that the information they are providing is kept secured, and the business is legitimate. In a way, this is one solid proof that the verification is not just a malicious attempt for fraud.
How to skip Verified by Visa?
In some transactions, Verified by Visa 3D secure is not applicable because the merchant is not a participant of the program. This is how one skips out on the verification process which is not entirely ideal in terms of security. Online shoppers are recommended to take caution on sites with no VISA Secure logo when making any amount of purchase.
Customers transacting on merchants with Verified by Visa simply cannot skip this extra security process. This is one important step that protects both customer and merchant, in that it shifts the liability of chargebacks to customers. Since a 3D secure code is sent to the customer via SMS or email, this guarantees that the transaction is done by the legitimate cardholder.