Cycbersource: Top of the News

VERIFIED BY VISA AND MASTERCARD SECURECODE. TIMES HAVE CHANGED!

Remember those payer authentication services that would prompt cardholders to input a password, authenticate them, and protect you as an online merchant from chargebacks? You know, the ones you looked at but initially rejected? Or, maybe you never even investigated their use due to the “bad buzz.”

True, initial implementations by Visa® and MasterCard® sparked merchant concern over shopping cart abandonment, online enrollment and likelihood of consumer adoption. However, program changes since 2003 have resulted in what appears to be a growing trend of re-consideration and adoption by consumers and merchants alike.

While Verified by Visa and MasterCard® SecureCode™ may still fit some merchants better than others, data suggests merchants in certain categories like non-impulse and high risk goods are finding new interest in and are implementing these services. Changes in implementation, card association willingness to work with merchants, and financial incentives now offer new benefits. The following summarizes the changes made 2003-2005.
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What Changed About the Implementation?

  • No More Pop-up Window. All implementations are now “in-line” and handled within the standard checkout page.
  • Enhanced Password Recovery. Improvements to password recovery make it easier for cardholders to recall forgotten passwords and complete the transaction.
  • New Branding/Advertising Policies. Card Associations now restrict issuing banks from advertising other services during checkout. The authentication form focuses only on authenticating the transaction.
  • Working Arm-in-Arm. Card Associations have shown a genuine commitment to working with merchants to address and overcome implementation concerns.
  • Higher Rates of Completion. Industry data suggests these changes have resulted in higher rates of transaction completion as compared to former implementations.

What Changed About the Financial Incentives?
  • Chargeback Protection. Protection against fraud-related chargebacks has always been a mainstay of the program and is still present. Rules vary slightly between MasterCard and Visa, but provisions for protection are offered by both card brands.
  • No “High Risk” Exclusion. A popular misconception was the fact merchants in “high risk categories” were excluded from participation. This is not true. Most all merchants can receive protection, it’s just that some must re-submit the chargeback and include the authentication information vs. the chargeback being automatically blocked.
  • Lower Interchange Rates. Both Visa and MasterCard are offering incentives ranging from 5 basis points to 50 basis point reductions in Interchange for merchants using payer authentication services. Depending on your card volume, sales mix and the way your merchant account is structured you may be able to realize reductions in your processing costs.
Where Can I Find Out More?
If you would like additional details you may find it helpful to download our merchant information kit (which includes an analyst report reviewing these issues).

©CyberSource Corporation. All rights reserved. CyberSource is a registered trademark in the U.S. and other countries. All other trademarks are the property of their respective companies.


Market Updates

NOW THAT THE PCI DEADLINES HAVE PASSED…WHAT SHOULD YOU DO?

The deadline for PCI compliance (the payment card industry data security standard) has now passed for all levels of merchants. If you're a Level 1 company (you do more than 6 million transactions per year across all channels or you've experienced an account breach) your deadline passed last September! The deadline for levels 2 and 3 was June 30, 2005. Level 4 companies, those with fewer than 20,000 e-commerce transactions per year, have no specific compliance date, though CyberSource believes it makes sense for all merchants that store or process credit card numbers to comply with the standard.

If you are a Level 1 merchant and have not completed certification you should engage a PCI consulting company (CyberSource is one of them) or qualified security assessor immediately. These companies can help you assess gaps in compliance, manage remediation efforts and submit required reports. Level 2 and 3 merchants must complete and submit the Self Assessment Questionnaire (available on the Visa site or built-in to some PCI scanning services). And, even if you have secured initial certification, Level 1-3 merchants are required to engage in quarterly network vulnerability scans to maintain compliance.

Helpful Links
Managed Compliance and Remediation Services. Fully managed services to help you assess, reach, and maintain compliance.
Online Certification Service. Quick and easy way for merchants level 2-4 to complete self-assessment, complete compliance scan and generate required reports.
Quarterly Scanning Services. Automated online service helps merchants of all levels fulfill quarterly scanning requirements.


Events

Hear CyberSource speaking on Global Payment Strategies, Full-Circle Fraud Management, Subscription Billing, and Alternative Payment Integration
Direct Response Forum
2005 Conference
August 9 - 11
Chicago, IL
   Shop.org
2005 Annual Summit
September 12 - 14




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©CyberSource Corporation. All rights reserved. CyberSource is a registered trademark in the U.S. and other countries. All other trademarks are the property of their respective companies.