Verified By Visa

[zorgie]

HI guys, Just wondered if anyone ccould help me. We are about to roll out the verified by VISA extra security, but alot of our internal people are sceptical about potential drop-off rates increasing. Does anyone have any idea where I can find a estimated decrease in closing rates that I might expect when adding in this extra level of security?

Many thanks
z

[Morocco]

I can't share hard data, but it will be less than your chargeback rate.

[Corey Bryant]

The "problem" is that you will have the companies tell you there is no drop off because of this (the way the checkout procedure is set up). Yes, all that is is a sales tactic.

Also, keep in mind that the rules for MSC vary greatly compared to VBV. And if you have a lot of MC holders, you might re-consider your decision if you are based in the United States and those MC holders are in the US as well.

-Corey

[brandyace]

VbV works better than Secure Code. Still, good to have both. Here’s how it works. (works only for US transactions)

Visa VbV Eliminates virtually all Visa chargebacks. .

1.When customer submits payment info screen comes up There are 3 choices.
2.First “issuer does not support”. (The issuer is the bank the issues the consumer’s credit card) Most large banks participate so the first option only applies to very small issuing banks.
3.Second, “issuer supports but consumer is not enrolled”
4.Third, “issuer supports and consumer is enrolled.”

No matter what box the consumer checks you are still protected from chargebacks. The consumer does not have to enroll. As long as the merchant offers VbV, you are protected from chargebacks.

MasterCard Secure Code

1.When customer submits payment info screen comes up There are 2 choices.
2.Card holder is enrolled
3.Card holder is not enrolled. Cardholder can enroll at that point

Chargeback protection only if consumer is enrolled.

[jwolthuis]

I'm a small eCommerce merchant, and tried VbV on my site for a year. I paid my VbV provider a monthly fee, plus a per transaction fee (in addition to the usual discount rate).

In my experience, a very high number of cardholders were not enrolled, and it seemed to generate a high number of, "what's this thing?" emails. Customer confusion is never a good thing.

I don't sell a type of widget that attracts fraudulent buyers, so YMMV. But my experience was not favorable.

[brandyace]

Indeed, for a small ecomm merchant selling a low risk product, vbv may not be worthwhile.

The majority of our clients using VbV are either high risk merchants and/or high volume merchants w/ int'l customers

For example, we have a client selling herbal supplements that had chargebacks of 2% because they do auto ship. For this particular merchant vbv made good sense and was an important element in bringing chargebacks back under 1%.

[zorgie]

Many thanks for all the replies guys, We are based in the UK so I am not sure how much of it is relevant to us, since I see in mnay of the posts US only. I did som research on the VISA site and it seems that there are a few bigger organisations that have been able to gain some money even though they have seen a drop in conversions

Again many thanks for the replies

Z

[budgie]

If you're in the UK you're not really going to have much choice in implementing this, as banks are starting to charge more for transactions that don't use it, and I believe from July they're going to insist on it. I only hope it is better implemented than it has been in the past, and that generous publicity is given to it as was done for Chip and Pin. Don't hold your breath though...

[zorgie]

*sigh* Your probably right, getting these figures out is almost impossible. I have given up trying to find any actual figures and we are rolling this out in July, so I wouldnt be surprised, I think we have a little more time before this becomes compulsary though.

Once again many thanks for the replies.

z

[Morocco]

MCSC gives more protection to international merchants than US based ones. If you are located in the UK and sell out of your region than you will be protected on all transactions.

As a US based merchant I sell internationally on both cards. When I sell outside of the US on MasterCard I'm protected regardless of whether the cardholder is enrolled.

I also heard a rumor that MasterCard will be offering blanket coverage like Visa byt the end of the year.

Also...if you take Maestro you have no choice you must run SecureCode or they won't authorize the transaction.

But as an international merchant running both programs you are virtual no longer liable for fraud across the board. Call your bank.

[simonuk]

I can see how far customers go on the order and at what point they fail. The extra security does cause problems. This seems to be especially true for businesses who use business cards and don't know the extra security info.

[Morocco]

Business cards and anonymous gift cards aren't part of the program. These cards don't go into the authentication step and will never be prompted for Verified by Visa or MasterCard SecureCode.