[Rolo]

Got this e-mail from one of our mainstream processors, which might explain how the new visa/mc protection systems works (btw. they do not do any adult auto rebilling, so thats why they like the new system so much):

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Visa and MasterCard Prepare PIN-style Protection for Online Payments

Visa and MasterCard are in the latter stages of launching Verified by Visa and MasterCard SecureCode - major initiatives which promise huge reductions in online fraud by enabling cardholders to enter secret information such as a password / PIN number when paying online. This enables the cardholder to be 'authenticated' by the card issuing bank - in a similar way to the signature or PIN used in physical, face-to-face transactions, for many years.

We are preparing a new payment page so that all customers can take advantage of these revolutionary initiatives and expect to make it available in a staged rollout starting March 2003.

Visa and MasterCard want all card acquirers, globally, to implement support for this system by April 2003. As well as a huge reduction in online fraud, a huge increase to consumer confidence in online payments is expected by both Visa and MasterCard, with a related increase in online sale volumes.

Better still, Visa and MasterCard are mandating a global "liability shift" from April 2003 which places liability for some fraud-related costs with the card issuer rather than the merchant. This is a major change in favour of merchants: Visa and MasterCard are saying that once these new authentication systems are properly in place, the card issuer must take responsibility, when a cardholder has been successfully authenticated, if in fact the transaction later proves to be fraudulent.

It could be the end of online fraud as we know it.
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So how will it look at adult sites?



Last edited by Rolo at Feb 25 2003, 05:16 PM