The introduction of Chip & PIN reduced the overall level of card fraud in the UK. However fraudsters work in areas of least security and when Chip & PIN secured the card present environment they moved to the
card not present environment. In 2006 CNP fraud stood at £213m out of a total fraud amount of £423m.
Original moves to secure the online environment were made in 2001 by Visa when they developed the 3-D Secure protocol and launched it under the brand Verified by Visa™. The technology was shared with
MasterCard who implemented it under the brand MasterCard SecureCode™.
3-D Secure works using the same model as Chip & PIN. The security is based on the combination of something that you have (the card and its details) and something that you know and can be verified (a password in this case or a PIN). When a cardholder enrols in either Verified by Visa or MasterCard SecureCode they register a password with their issuing bank. During the authentication process the cardholder is directed to a page hosted by the issuing bank where they are challenged for their password details. A correct response authenticates the transaction, an incorrect one invalidates it. If a cardholder is not enrolled in the appropriate scheme they will either be prompted to enrol by their bank during the payment process or if their issuing bank does not require that cardholder to enrol in 3-D Secure no action will be taken and the card transaction will proceed as normal.
What does The Logic Group offer for Merchants?
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Every Secured Online Transaction from The Logic Group is not liable for chargebacks, regardless of whether the cardholder is enrolled in the scheme or not, the liability will instead fall to the issuer. Our solution is available either as a licensed option or as a managed service. 3-D secure Authentication enables merchants to benefit from both Verified by Visa and MasterCard SecureCode online payer authentication, cutting fraud rates and reassuring card holders. A range of anti-fraud measures such as address verification and card security code checking are also supported by a Managed Transaction Service using Solve/SE.
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Financial incentives are offered to merchants investing in higher security card processing solutions.
In addition, after June 2007 MasterCard have announced that online merchants will no longer able to process Maestro debit transactions unless they support SecureCode™.
Every transaction that is passed to -OPAL is not liable for chargebacks, regardless of whether the cardholder is enrolled in the scheme or not, the liability will instead fall to the issuer. OPAL is available either as a licenced option or as a managed service. Using Managed Services enables merchants to benefit from both Verified by Visa and MasterCard SecureCode online payer authentication, cutting fraud rates and protecting themselves against the cost of chargebacks. A range of anti-fraud measures such as address verification and card security code checking are also supported by the managed service using Solve/SE.
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Easy access to the Verified by Visa and MasterCard SecureCode schemes which are the accepted industry method for increasing the security of online payments
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The merchant is able to offer its customers a more secure environment in which to make online payments, meeting the customer demand for secure payment environments |
More Effective Customer Interactions
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Up to 80% reduction in fraudulent transactions |
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Reduce overall time and effort spent managing customer payments |
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Gain a competitive advantage over non-secured sites by positioning yourself as a merchant who provides as secure an environment as possible for card payments |
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Liability is shifted to the issuer for fraudulent transactions as long as the attempt is made to authenticate the cardholder via 3-D Secure |
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Avoid additional fees from Acquirers for not implementing 3-D Secure |
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Reduce the Merchant Service Charge. This will require negotiation between the Merchant and their Acquirer |
