LOS ANGELES — On October 1 the major credit card companies — MasterCard, Visa, Discover and American Express — began shifting liability for credit card fraud to merchants that are not EMV-compliant.
History has shown that EMV-compliance virtually eliminates credit card fraud and when the buyer uses a credit card with an RFID chip and the merchant has an EMV-compliant credit card terminal.
While this is good for brick and mortar businesses, history has also shown that when EMV-compliance helps greatly with purchases made face-to-face, there is also the potential for additional credit card fraud with relation to online credit card purchases, according to Mobius. For those merchants relying solely on online purchases or brick and mortar businesses, Mobius Payments announced it now supports Verified by Visa fraud protection.
As Mobius Payments CEO Mia Zhu explained, “Verified by Visa offers real-time fraud protection by confirming an online shopper’s identity before allowing the transaction to be completed. The cardholder can activate Verified by Visa by authenticating their identity with their credit card provider.”
Zhu continued, “The cardholder will select their own six-digit password which becomes their virtual signature.”
Mobius said registering for Verified by Visa is quick and easy; more importantly, it offers an additional layer of fraud protection for both the merchant and the buyer. Verified by Visa relies on technology known as Three-Domain Secure Protocol. The three domains include the Acquirer Domain, which is the domain of the merchant and bank being paid; the Issuer Domain, which is the bank that issued the card; and the Interoperability Domain, which is the domain where the Verified by Visa infrastructure is set-up.
Verified by Visa provides additional security prior to the transaction authorization for merchants and creates the trust every cardholder hopes they have when making online purchases, Mobius added.
This additional layer of security provides many benefits for the business owner as it will result in decreased chargebacks which gives them the potential for reduced interchange fees due to lower chargebacks; this results in reduced operating expenses for the business owner.
At the same time, customer confidence is increased which will lead to increased profits for the business, Mobius said.