There are 69% of Americans who have tried shopping online and at least 25% of them shop at least once a month. These numbers will easily tell you that online shopping is slowly taking over traditional retail shopping simply because consumers don’t have time to visit stores but they still love to shop.
So if you’re a business, you need to be familiar with how online selling works, especially when it comes to payments. Here are three things you need to know about payer authentication:
Also known as MasterCard SecureCode and Verified by Visa (VbV), payer authentication is simply a set of protocols developed by both Visa and MasterCard with the goal of allowing consumers to safely shop online.
Embracing these programs into your system will reward you with lower interchange rates and chargeback protection, which are highly beneficial for your e-commerce business.
Visa and MasterCard created payer authentication programs in an effort to help reduce fraudulent activities online and win back the trust of consumers when shopping online. It is beneficial to their business and it’s also quite rewarding for you as a merchant where you can enjoy:
Both Visa and MasterCard use the same payer authentication process for online transactions. Each VbV and SecureCode cardholder will be asked to create a PIN or “secure code” for his credit card. When shopping online, he will be asked to key in this PIN during checkout, which will be verified by the issuing bank.
The cardholder will also be asked to provide additional information to confirm his identity. This allows for more secure transactions and avoids fraudulent activities from stolen cards and identities. Basically, each transaction follows this path using the payment gateway:
If there are no records of an attempt to authenticate, a merchant may find it hard to prove a transaction and thus claim the benefits covered under the agreement with Visa and MasterCard.
As a business, you should always know how to take advantage of programs like payer authentication to allow your customers to enjoy shopping on your website without having to worry about their information being stolen or their card being used for fraudulent activities.