Liability shift. Typically, when a transaction is disputed, it’s the merchant who pays the price. 3D Secure ensures liability shifts from the merchant to the issuing bank. This alone may make worldwide implementation of 3D Secure worthwhile for your business.
Chargeback protection. Verified by Visa ensures you’ll never receive a chargeback on your merchant account. This can help prevent “friendly fraud,” where a customer knowingly makes a purchase and files a chargeback, knowing the bank will side with the customer. (MasterCard does not support chargeback blocking).
Interchange benefits. These include lower interchange fees, and in some cases longer payment terms with your acquiring bank.
Increased online shopping. Fear of online fraud holds many consumers back from shopping online. Verified by Visa claims its product increases online shopping, and suggests customers are more willing to purchase through a site that uses 3D Secure.
Customers hate it. It’s not just merchants that moan about 3D Secure. If there’s any doubt – check out the live stream of Tweets griping about Verified by Visa. Many are NSFW.
@anyagrace laments: “Lloyds TSB Click Safe/Verified by Visa is the absolute bane of my life. I create a new password every time and it just gets longer and longer.” This message was retweeted by several of her followers.
Customers don’t understand it. In markets where it’s not mandated, customers are not always sure what to do. When faced with an extra step in the checkout process – many will just give up and seek out a seller that doesn’t use it.
Card blocking . Livid customers who have been locked out of online shopping will increase the number of complaint calls to your customer service line. They may also vow to never transact with you in the future.
Not to mention, 3D Secure is not all that secure…