New headache for Indian ecommmerce websites

[anand84]

It's a news that is a bit old, but getting relevant now. The Reserve bank of India has now mandated that all credit card transactions inside India should go with an extra layer of security that will require credit card users to first register their card at the bank's website, obtain a password and thereon enter the password for every transaction. This will take effect from August 1

[rbi.org.in...]

I see this as a huge hurdle coming to the Indian ecommerce websites. How good are you educating your customers about this new layer of security that will no good, but harm all the way in easing a transaction.

[Green_Grass]

All internet transactions HAVE to go thru. this, so the consumer has NO choice if he wants to shop on the net. He HAS to get that additional password. Should reduce fraud though.

I checked with Citibank re my automatic payments to G ( for adWords), and they said as this was under a separate arrangement, it would not be affected. I hope not.. I will track it carefully.

[piatkow]

We have this in UK already. It does confuse a few customers but my level of cc sales was too small to give a representative sample.

[LifeinAsia]

So let's say someone outside of India wants to buy somethign from an Indian ecom site. How many non-Indian banks are setup for this? It sounds like a localized implementation of the Verified By Visa program, which is widely panned by customers and developers.

All internet transactions HAVE to go thru. this, so the consumer has NO choice if he wants to shop on the net.

Huh? There's no such requirement. I've been buying and selling on the Internet for years (outside of India) without any special registration of my credit cards (or passwords).

[anand84]

The rule only applies to credit cards issued within India. So, if you own a credit card issued outside and transact with an Indian ecommerce site, you will not have any issues.

The reverse holds good too. Indian card holders can transact without hassle with non-Indian ecommerce sites.

[Green_Grass]

LIA,

Sorry to confuse you. As this thread was specifically about the RESERVE BANK OF INDIA notification, naturally I meant, all INDIAN consumers transacting within INDIA, have to get this new password.

[dukelips]

It will actually have an impact on impatient clients.
With a Unpredictable PG like ICICI, already we have lost money on incomplete transactions and with the new change, it will surely bringdown the conversion rate.

[piatkow]

People will get used to it, the way they have got used to chip and pin over here for b&m transactions. But yes you will take a hit in the short term. Presumably you will benefit from fewer chargebacks.

[TheGrid]

That's a good idea to reduce fraud. If all consumers have to do this then it's not a disadvantage to your specific site.