We have Ezimerchant 3.5 and we want to know if we can add Verified by Visa to our web site

[newGuy]

We have Ezimerchant 3.5 and we want to know if we can add Verified by Visa to our web site

[dferguson]

Currently the Verified by Visa system is more hype than reality. None of the payment gatways that we support (eway, directone, or netregistry) currently support the new system.

The reasons are mostly due to cost and complexity of the system and no one being really sure if it will last.

The last so called 'security system' that they tried to implement fell flat on its face - The CVC or CVV number system - This is still not being used by all banks and EFTPOS terminals.

Once the banks and payment gateways make the system available to everyone in a cost effective manner we will jump at the chance of implementing it into ezimerchant Professional.

[garrison]

Our financial institution has recently begun emphatically encouraging its customers to do online business with participating stores which "offer" the "Verified by VISA" service. It is asserted that, "with 'Verified by VISA, you can now get added safety and the reassurance that only you can use your (bank's name) VISA card online to shop at participating Verified by VISA stores...your card will now be recognised when you purchase at participating online stores. You will be asked for your passowrd, your identity will be verified and the transaction completed". We currently manually process VISA payments received from our customers, but is the "Verified by VISA" option able to be incorporated into the EziMerchant "shopping cart" experience in some obvious way that our customers will see when they place their orders?

[bcarroll]

Being that there is currently less than 50 AU online stores supporting verfied by Visa, and that the service is optional for cardholders who have to apply for it - remember another password and use it when using online stores.... If anything verified by visa is more "risk" to the customers as there is no chargeback option - which of course is good for us merchants.
No chargebacks is really the only benefit for us - but this is countered by the fees payable for verified by visa program - which from memory is about 1.5% of card turnover. So if you have less than 1% chargeback (which should be possible for a well run merchant who vets orders) then verified would cost you more in the long run.
I dont know the percentage of cardholders from the banks currently pushing verified which have signed up but I would imagine it is so low that no one should really care.

[dferguson]

Hi Peter

My post above explains why we have not implemented it?!


Ben -> Those 50 stores you mention.. They would have been hand picked by Visa and had there hand held while implementing the verified by Visa security system.

ezimerchant Professional's GTS is not actually the payment processor.. Its an inbetween server.. Its job is to collect and pass on the customers card details to a payment gateway which then does the processing of the card.

Therefore the payment gateways must support the verified by Visa system before ezimerchant Professional can!

None of the payment gateways are willing to invest in the system or cant due to lack of commitment, support and availability from the banks.

[Sevario]

Dferguson - We began employing VbV on our site in August. It has cut our fraud rates by 64% and saved us tens of thousands of dollars. You say that it's just hype and no one is sure if it will be around?

To say that "none of the payment gateways are willing to invest" is silly, since most of the major players are already doing it. The largest gateways in the world, VeriSign and Authorize.net have already implemented. VeriSign has VbV and SecureCode embedded into their buyer authentication service which we use through PayFlowPro. Authorize.Net also has modified their gateway.

Also, over 9,000 issuing banks worldwide have implemented the system for their cardholders, and over 2,500 merchants, not 50, are currently using the service on their sites.

So where is the "lack of commitment, support and availability"? You guys need to look into modifying your product for VbV and SecureCode and catch up with the rest of the world. You will start losing marketshare when merchants realize they can start getting guaranteed payment, reduced chargebacks and accept international trx from somewhere else...

[dferguson]

Hi Sevario

After recieving your post I did a little homework before forming a reply...

I have spoken Verisign Australia and also to, the two biggest Australian payment gateways that we support.

All three companies confirm what I said in my original posts:

In Australia the Verified by Visa and MasterCard 3D secure systems are simply more HYPE than reality.

The vast majority of our merchants are Australian, and need Australian based information. As such Authorize.net is simply out of the question.

Verisign however, does have an Australian presence and after contacting them by phone today I have been assured that they DO NOT currently support the Verified by Visa system and that it "will be coming in a new software update in a month or so's time"

If you have any other suggestions as to how our Australian merchants can cost effectively perform Real Time transactions via an Australian gateway while supporting the Verified by Visa system please let us know!

[sevario]

David,

Thanks for the feedback. I apologize for the misunderstanding, I did not realize you were referring to the Australian marketplace. My figures were regarding the US roll-out of the programs. However, VeriSign Australia, as you said, already has plans to deploy the service. They have an active Buyer Authentication product in the US and their AU location will be providing the same service. My understanding is that they already are implementing with some fairly large AU merchants.

Please forgive my zealousness. I do think it is a great service, but it has mostly been confronted by skepticism and wariness, because most merchants don't believe that Visa/MasterCard would ever do anything 'nice' or beneficial to them.

The fact of the matter is, even though the programs are highly beneficial to eMerchants, and the savings and protection are great, in the long run it will really benefit Visa and MC the most. If they succeed and begin to establish safe eCommerce, then the number of electronic trx will increase and Visa/MC will generate even more per/trx revenue as e-sales volume skyrockets.

So merchants are right to suspect that Visa and MC have alterior motives, it just so happens that in this case, the path for more profits leads though eTailers and will benefit them. Just follow the money...

Anyways, I appreciate you shedding some light for me on the AU situation. Clearly you are on top of what is going on down under!

Best regards,

Rick

[dferguson]

Hi Rick

No probs.

We to hope the whole 'credit card fraud' situation gets fixed quicky. The sooner this happens the better for us because more and more small business will want to get online and hopefully many of those will use our product.

There are actually a few gateways (other than Verisign) who have the system in place - some have had it for quite a while, but they all tell us the same storey - There are not enough card holders (in Australia) registered for VbV or the MasterCard equiv. to justify the cost of implementing it. (egg before the chicken)

The banks down here havent done enough (yet) to educate the card holders on the new system either.. I have been told that the complete marketing campaign to date has consisted of ONE paper pamphlet being included in the card holders monthly statement. ONCE!!!

[Niko]

If anyone is having fraud problems its most likely due to being naiive about orders from Indonesia or USA but to be sent to Nigeria or that they have an automatic card processing service in place, which means many credits being made at cost to the merchant. I do all transactions manually and use a number of web sites that provide IP address location verification and I insist on a landline and a fixed address (not a PO Box) if in a city in the order. If the customer doesn't reply/wish to then the order is thrown in the bin!

So far (touch wood) I have not made a loss from fraudsters.