Australian e-commerce merchants that experience a high degree of fraud will be required to offer Visa’s online security service, Verified by Visa (VbV), from 1 October 2014.
VbV is an online authentication service which confirms a customer’s identity when they are about to purchase items.
According to Visa's senior director of risk services, Ian McKindley, the requirement was made due to a rise in card not present (CNP) fraud.
He cited 2013 data released by the Australian Payments Clearing Association (APCA) which indicated that CNP fraud in Australia increased 5 per cent over the past 12 months ending June 30 to $198.9 million.
This compared with CNP fraud statistics from 2012 which showed a total of $183 million.
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“The companies targeted by CNP fraud included airlines, computers, software, electronics, music, telecommunications, travel and gambling. The VbV service brings a simple addition to the online checkout process that will support a reduction in online fraud,” he said in a statement.
McKindley added that companies who offer VbV are protected from fraud-related chargebacks on Visa cards.
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