Visa steps up fight against online fraud
02/19/2014
Australian eCommerce merchants required to implement new security measures by October 1
Sydney - Visa announced today that from 1 October 2014, online merchants that meet specific criteria must use Verified by Visa (VbV) to bring added security to their eCommerce transactions.
Verified by Visa is a free, simple-to-use service that adds another layer of protection to online transactions through a personal password that confirms a customer’s identity at participating merchants, when the customer checks out online.
While Verified by Visa is a service available to all online merchants, the mandate announced today specifically requires online merchants that meet specific criteria to implement the VbV system by October. The criteria include merchant categories that experience a high percentage of electronic commerce fraud or those merchant categories that experience high levels of electronic commerce fraud as a percentage of sales.
Visa’s Senior Director of Risk Services, Ian McKindley said: “Ensuring payment security is one of Visa’s highest priorities. Card fraud in Australia remains at low levels but we must remain vigilant.”
Recent industry fraud data released by Australian Payments Clearing Association (APCA) shows online fraud in Australia increased by five per cent over the past 12 months ending June 30, to $198.9 million. This is against a reported increase of more than 14 per cent in internet shopping over the same period.
“The latest fraud data shows that card-not-present (CNP) fraud, which is primarily fraud conducted online, continues to represent the bulk of fraud on Australian-issued cards over the past year. It is important for merchants in high risk categories to implement Verified by Visa to bring added protection to their customers online,” said McKindley.
“The merchants targeted include airlines, computers, software, electronics, music, telecommunications, travel and gambling. These are areas that are seeing a lot of growth online. The Verified by Visa service brings a simple addition to the online checkout process that will support a reduction in online fraud,” he continued.
All online merchants can talk to their acquiring banks to find out more about how to implement Verified by Visa. Merchants that use Verified by Visa are protected from fraud related chargebacks on all personal Visa cards.
Visa recently launched a website aimed to help educate consumers and retailers about the different types of fraud that exist and how to avoid them. Go to www.visasecuritysense.com.au to find out more.
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 47,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information visit www.visa.com.au and @VisaNewsAU.
Media contact:
Teneille Rennick
02 9253 8841 or 0449 892 915
[email protected]