Should You Use Verified by Visa or Not 2023

Should You Use Verified by Visa or Not Every now and then we’ve been approached by a merchant who would specifically ask to be set up with Verified by Visa and MasterCard SecureCode, known as a 3-D Secure merchant account.

Sometimes they did even if a non-3D service was available for her business Should You Use Verified by Visa or Not.

These are mostly international traders in some high-risk industry or another who have previously used both types of trading accounts and had a less than satisfactory experience with the non-3D version.

The biggest failure they cite as always is that the non-3D type failed to protect them from chargebacks that weren’t their fault. Conversely, 3-D solutions have helped them keep chargebacks low and their trading accounts in good standing.

So if a 3-D Secure merchant account is better at minimizing chargebacks, why would a merchant want to use anything else? Why is 3-D Secure the exception (at least in the US) rather than the norm? Well, the biggest reason is that the 3-D protocol makes the check-out process much more complicated and cumbersome than it would otherwise be by requiring customers to go through an additional process to verify that they are authorized users of their credit cards.

Should You Use Verified by Visa or Not
Should You Use Verified by Visa or Not 2023

And the process isn’t as simple as entering your card’s security code or your zip code, it involves registering your card with Visa or MasterCard and creating an additional username and password in the process. Many cardholders are understandably unwilling to go the extra mile, and the end result is that a 3D solution can cause a merchant to lose up to 30 percent of their transaction volume. Yes, it makes such a big difference!

So what type of merchant account should you choose for your business?

The answer is “it depends”. Most of you would be better served with a traditional non-3D trader account. If, on the other hand, you have a really big problem with fraud-related chargebacks, you would most likely benefit from a 3-D solution. Otherwise, you may have your trading account closed. If you opt for 3-D Secure, here’s what you need to know about Verified by Visa. I will list the MasterCard SecureCode separately for the sake of clarity.

Verified by Visa Basics

Verified by Visa is based on what is known as 3-D Secure – an XML-based protocol developed by Visa. In fact, Visa named it Verified by Visa. The new protocol aimed to improve the security of online payments. Other major card brands later adopted the protocol and designed their own 3D solutions. MasterCard’s is called MasterCard SecureCode, JCB’s is called J / Secure, and American Express’ — American Express SafeKey.

These services verify the identity of cardholders during a web transaction with 3D participating merchants. At checkout, merchants show a short message to the customer to alert them that they may be further prompted to activate the card with the relevant 3-D service or, if the account is already activated, to provide a password. Here’s how that message might look:

Activate Verified by Visa

The pre-authentication message can be embedded in the checkout page as shown below:

hould the cardholder need to activate their Verified by Visa account, they will be prompted for their card number and email address. The cardholder will then be asked to verify their identity by providing their name and card security information.

Once verified, the cardholder is prompted to create their Verified by Visa account, which would include things like choosing a secret question and answer, a personal greeting, and a password.

Once this is done, the 3-D Secure cardholder’s enrollment is complete and they will be taken back to the merchant’s checkout page to complete their purchase. From now on, every time the cardholder uses the card at a merchant that uses the relevant 3-D Secure service, the cardholder will be asked to enter the password at checkout. The verification form for Visa would look something like this:Authenticity verified by Visa Should You Use Verified by Visa or Not.

After verifying the cardholder, the authentication window would disappear and the transaction authorization would be completed as usual.

Things you should know

Your processor would help you with the VbV implementation process, so I don’t need to write about it. But I will say a few words about how to set up and use the Electronic Commerce Indicator (ECI), which is not always done correctly Should You Use Verified by Visa or Not.

ECI indicates the level of security used for payment when the cardholder has provided their payment details. It must be set to a value corresponding to the validation results and characteristics of the merchant’s checkout process, as follows:

ECI 5 — the cardholder has been verified by an issuer that has verified the cardholder’s password or identification information.
ECI 6 – The merchant attempted to verify the cardholder, but neither the cardholder nor the issuer participated.
ECI 7 — the transaction was processed over a secure channel (for example, SSL / TLS), but the payment was not verified, or the issuer responded that the verification could not be performed Should You Use Verified by Visa or Not.

However, US merchants who are being monitored for excessive chargebacks or fraud may not be allowed to send verified (ECI 5) and/or attempted verification (ECI 6) transactions.

In addition to reducing fraud, 3-D Secure protects you from certain types of chargebacks for verified transactions. For example, with Verified by Visa, because issuers verify the identity of their cardholders during transactions, the following chargeback reason codes would not apply to successfully verified transactions:

Reason code 75 — The cardholder does not recognize the transaction.
Reason Code 83 – Fraudulent Transaction – Cardless Environment Should You Use Verified by Visa or Not.

Additionally, should you attempt to verify a cardholder and the issuer or cardholder does not participate in the Verified by Visa program, you will still be protected from the above chargebacks for verified transactions.

This means that you would be protected if you went ahead with the transaction, despite the cardholder’s lack of participation or (exceptionally) the issuer’s participation. In practice, the purpose of using a 3-D Secure business account is to process only successfully verified transactions.


The benefits of using a 3-D Secure business account are obvious. However, as well as the downside. As you can see from the description of the 3-D verification process, cardholder participation involves a full registration process that the cardholder would have to repeat for each individual credit card Should You Use Verified by Visa or Not.

On the merchant’s side at checkout, each additional step lowers the conversion rate, i.e. lowers sales. As previously stated, research shows that 3D trading accounts can fail to complete up to 30 percent of sales.

In this article, we’ll talk about what it is, the benefits for you and your customers, the potential drawbacks, and how to use 3D Secure to ensure maximum security for your online transactions.

What is Verified by Visa?
Verified by Visa (or VbV) is an advanced anti-fraud tool offered by Visa to businesses. Similar to MasterCard, SecureCode requires an additional level of verification in the form of an access code to prove that only valid cardholders are making purchases.

Should You Use Verified by Visa or Not
Should You Use Verified by Visa or Not

Verified by Visa benefits

VbV is what is known as a 3D Secure fraud prevention tool, which means that 3 parties are involved in the verification process: the business selling the goods/services, the acquiring bank and the card network. (In this case, Visa.) 3D Secure is one of the latest fraud prevention tools offered by card brands Should You Use Verified by Visa or Not.

Related article: Mastercard SecureCode

3D Secure 2.0
In 2017, Visa will implement 3-D Secure 2.0. Version 1 was based on password authentication and required consumers to register before use. Version 1 also used a pop-up window that caught customers off guard and was problematic for mobile browsers to handle. These issues are partly responsible for the slow adoption of 3D Secure, and version 2.0 aims to streamline the process.

This new update helps minimize fraud and introduces a more secure payment method across the market.

Token and biometric authentication methods replace static passwords in 3D Secure 2.0, eliminating the registration process. Connecting mobile applications, smart cards and other electronic payment methods represents a seamless process from the customer’s point of view Should You Use Verified by Visa or Not.

It also replaces browser-based “card-to-presence” transactions with more mobile-friendly authentication. This ensures seamless integration between multiple mobile devices and payment platforms. This has been a big problem with the wide variety of operating systems and payment options in today’s consumer market.

The enhanced integration also improves risk-based decision making for payment processors and improves customer recognition with every transaction. Comprehensive security and performance is a huge step forward in fraud prevention.

Full information on the 3D Secure 2.0 update (along with 3D Secure 1.0 documentation) can be found at

Which businesses should consider using Verified by Visa?
Visa specially designed by VbV for online (e-commerce) businesses. As the United States moves to EMV chip cards to increase security in card-presented transactions, some experts predict an increase in e-commerce credit card fraud, a trend that has been reported in other countries that have already adopted EMV technology. accepted.

If you sell goods or services online (or sell both online and in-store), you may want to consider using Verified by Visa and other 3D Secure technologies for the online portion of your sales.

How does using VbV benefit my business?

Visa states that using Verified by Visa can benefit your business in the following ways Should You Use Verified by Visa or Not:

Reducing the number of chargebacks received
Shifting liability for fraudulent transactions from you to the issuer
Increasing customer confidence
Reduction of interchange fees
Of course, these benefits cannot be guaranteed simply by using Verified by Visa. Rather, it is a list of possible benefits.

Chargebacks can be reduced because Verified by Visa helps catch fraudulent transactions before they are authorized. Liability may shift from you to the issuer if you meet certain requirements to attempt to verify transactions through Verified by Visa. If your customers are worried about online credit card fraud, VbV can provide assurance that transactions will be secure and boost sales. If your business qualifies under Visa’s CPS program, you can reduce interchange fees Should You Use Verified by Visa or Not.

Verified by Visa Interchange Rates

Interchange fees make up a large part of the total cost of processing your credit card. There are hundreds of exchange categories, each with an associated rate. These rates are not contractual. However, transactions may sometimes qualify for lower cost categories. This is when you use Verified by Visa correctly.

Implementing Verified by Visa may allow you to exchange “E-commerce Preferred”. Transactions that qualify will have, among other things, an “e-commerce indicator” of either 5 or 6, which refers to VbV status. (5 means the transaction passed Vbv verification successfully. 6 means the business is set up to be verified by Visa, but the cardholder or issuing bank is not, so the transaction could not be verified with Vbv.)

Although Preferred E-Commerce may result in lower rates, it only applies to specific card types. Specifically, it applies to “rewards” credit cards and certain debit cards. You may see a preferred e-commerce exchange with consumer cards with no rewards, but the rate will be the same regardless.

CardFellow members who need assistance with exchange rates and fees can contact us for assistance.

Are there any disadvantages to using Verified by Visa?

Maybe. It’s possible that an extra step in the checkout process could increase your cart abandonment rate or otherwise hinder sales. If you enable VbV on your website, your customers will have to use it if their bank supports it. (If not supported by the bank, customers will be able to complete their checkout without entering a Verified by Visa code.)

While Visa says the impact on payment times is minimal and your customers don’t have any software to install, you’ll need to carefully consider the implications of the next step for your particular business and your customers to determine whether it’s worth implementing. Some customers may not like the requirement to use it and not complete the purchase Should You Use Verified by Visa or Not.

Visa’s Merchant Best Practices document looks at ways to ensure a smooth checkout process and suggests informing customers that you use Verified by Visa through pre-written text on the checkout page to reduce lost sales.

However, it should also be noted that some companies have started offering effective solutions for 3D Secure. Options such as the PAAY plugin or API enable the security of using 3D Secure without the need to enter a passcode. Customers will only need to enter an access code if they enter a transaction that does not match the expected information Should You Use Verified by Visa or Not.

Does it cost extra?
It depends. If you need to purchase and install plugins to enable Verified by Visa on your website, you may be charged upfront or other fees. To find out, first contact your processor to see if they offer Verified by Visa as part of your processing services. Your processor will be able to advise you if there are fees for your business to implement and use Verified by Visa Should You Use Verified by Visa or Not.

How do I implement Verified by Visa?
To start using VbV, contact your credit card processor. You can also find more information in the official Verified by Visa Merchant implementation guide Should You Use Verified by Visa or Not.

3D Secure (3 Domain Structure) is a security protocol that helps prevent fraudulent online credit and debit card transactions. This additional level of security was first implemented by Visa and was soon followed by Mastercard and American Express. They have since been labeled as Verified by Visa, MasterCard SecureCode and SafeKey.

The three D’s in 3D Secure stand for three domain servers. This means that there are three parties involved in the verification Should You Use Verified by Visa or Not:

Retailer – eg Tesco, Topshop, Starbucks etc.

Acquiring Bank – Halifax, Lloyds, Barclays etc.

Card issuer – Visa, Mastercard, American Express, etc Should You Use Verified by Visa or Not.

In general, 3D Secure systems provide an additional layer to conventional online payment protocols and provide enhanced card security checks.

In practice, if you are ready to pay for something online, you will be redirected to the debit or credit card provider’s secure 3D page on their website. You will then be asked by the provider to enter a password or verification code. After entering the correct information, the payment will be approved by the card provider and you will be redirected back to the original website Should You Use Verified by Visa or Not.

Of course, how 3D Secure systems work and what they require from the customer varies from service to service.

But for now, let’s look at the main focus of this article – Verified by Visa.

What is Verified by Visa?
As we mentioned before, Verified by Visa is a 3D Secure service from Visa. Launched in 2001, it’s an advanced anti-fraud tool offered by Visa to businesses – and probably the best-known fraud prevention service in the UK Should You Use Verified by Visa or Not.

It is there to provide special attention to online shoppers and provide protection against fraudulent card transactions on its member websites in Europe Should You Use Verified by Visa or Not.

So let’s dive into the real thing and explore how Verified by Visa actually works.

How does Verified by Visa work?

A simpler answer is this:

The customer enters their Visa card details, which triggers the Verified by Visa protocol to start working.

Next, a message window will appear requesting additional security information from the customer. This is usually through their Verified by Visa password or a verification code sent to their phone Should You Use Verified by Visa or Not.

If the information provided matches, the transaction continues as usual. However, if something does not match or the information is entered incorrectly, the transaction will be rejected Should You Use Verified by Visa or Not.

For those looking for a little more detail, the Verified by Visa process is a bit more detailed than the above.

So this is how it works according to Visa Should You Use Verified by Visa or Not:

The cardholder enters their Visa payment details.
The merchant’s 3D Secure service provider packages the transaction information message and delivers it to the issuer via an authentication request.
The transaction is then assessed by risk. Low risk = no additional customer verification required. High risk = the cardholder will be prompted to verify their identity by entering a password or one-time authentication code Should You Use Verified by Visa or Not.
The issuer sends the authentication result to the merchant.
The merchant then submits the transaction for authorization and marks the authentication result.
Well, there you have it. That’s how Verified by Visa really works Should You Use Verified by Visa or Not.

Now on to what customers think about this added layer of security…

Does Verified by Visa hurt conversion rates?
When Verified by Visa was originally launched, consumers weren’t too impressed. They were either scared because they thought the next step was a fraudulent process, or they just couldn’t remember their password. This has caused many to abandon transactions at the last step – the worst thing that can happen to online merchants.

The hard part – attracting visitors to your website and convincing them to buy something – was out of the bag. But the final payment was not. And all because of an annoying verification field during the checkout process. A potential client has disappeared Should You Use Verified by Visa or Not.

This confusion and a reduction in the number of customers for some merchants has led to a sharp drop in conversion rates – and many merchants have decided to offer PayPal as an alternative Should You Use Verified by Visa or Not.


However, that is all in the past and the Verified by Visa process is now much more user-friendly. Instead of a risky popup, it’s integrated into the payment page. It has become part of the checkout process rather than a confusing add-on.

The risk assessment process also means that not all transactions will be subject to special checks. In fact, less than 5% of transactions where 3D Secure could be used actually pass 3D Secure checks.

Customers are also less likely to leave the van with these improvements Should You Use Verified by Visa or Not.

Will PSD2 affect Verified by Visa?
The EU’s Payment Services Directive (PSD2) came into force in January 2016. It brings new laws aimed at improving consumer rights and increasing online security Should You Use Verified by Visa or Not.

PSD2 will require strong customer authentication if either the bank that issued the customer card or the bank that issued the merchant card is located in the European Economic Area Should You Use Verified by Visa or Not.

It allows merchants to obtain customer account details from their bank – with their permission. This means that when a consumer buys something, they can make the payment for you without having to redirect you to another service (like Visa) Should You Use Verified by Visa or Not.

Perhaps most notably, PSD2 includes a mandate to perform strong customer authentication (i.e., two-factor authentication) before payment is initiated. The instructions also require the use of a “one time password Should You Use Verified by Visa or Not”.

Is Verified by Visa compliant with PSD2 requirements?

So the big question – does Verified by Visa meet PSD2 requirements, or will online merchants look to take their business elsewhere?

Should You Use Verified by Visa or Not
Should You Use Verified by Visa or Not 2023

According to Visa, Verified by Visa is fully compliant:

“Visa supports PSD2 requirements for Strong Customer Authentication (SCA) and Visa
3D-Secure (3DS) supports PSP to be PSD2 compliant. 3DS along with our new
the products, programs and positions described in this document are consistent with Visa’s vision
for secure, compliant, advanced and convenient electronic payments and aims to provide a
a good balance between security and consumer convenience Should You Use Verified by Visa or Not.”

It’s worth noting that there are some exceptions to the SCA that allow the use of “alternative authentication methods”. And it; the transaction is lower than 30 euros or the transaction is considered low-risk after a risk assessment Should You Use Verified by Visa or Not.

Due to the current COVID-19 crisis, the Financial Conduct Authority (FCA) has agreed to delay the enforcement of Strong Customer Verification (SCA) until 14 September 2021. This means that UK issuers do not have to reject non-compliant transactions before then . date Should You Use Verified by Visa or Not.


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