Comments on: Online fraud: good for banks, bad for business

By: ken

ken — Thu, 26 Oct 2006 12:13:46 +0000

The banks have to be signed up to it or it dosent work….

The customer gets a pop up window from VISA / MASTERCARD where theyre prompted for their password/pincode to proceed with the transaction….

the funny thing is when we tried this, there was a link for ” I forgot my password, create a new one”
After clicking on this, all you need to create a new password is birthdate!!!! after putting in birthdate (no secret question etc) you can just type in a new pincode!!! no hassles

what a joke!

By: ken

ken — Thu, 26 Oct 2006 12:01:56 +0000

Well are signed up to both the mastercard and visa…and we still get chargebacks… even transactions where nothing matches… customer name, security code, country, etc…

I do not see the banks ever wanting to or needing to change this… they make more money with chargebacks, and they dont lose money by insuring their customers agaist fraud, that money comes back from the merchant, with a chargeback fee included.

Bastards 😛

By: Kittykatze

Kittykatze — Thu, 26 Oct 2006 09:59:19 +0000

That is my understanding, aye.

Bear in mind though, the conference I went to was many years ago. Probably best to have a dig around and see if that’s still the case. 🙂

By: olivia

olivia — Wed, 25 Oct 2006 14:43:32 +0000

I see… so if for example Sock Dreams offered the visa & mastercard PIN option on their cart, regardless if any customers used it, they would not have to pay chargebacks on any fraudulent payments because they have taken all the steps necessary to protect customers cards?

It would be great news for the merchant if this is true…

By: Kittykatze

Kittykatze — Wed, 25 Oct 2006 14:25:13 +0000

“In a perfect world these two idea by mastercard and visa are goodâ€¦ but only a few people will sign up to itâ€¦ and as a merchant are you gonna ban the rest??? ”

You don’t have to.
As a Merchant, just by offering the facility to input an online PIN as an additional security feature, you have protected yourself against taking the hit in the case of fraud regardless of whether your customers have signed up for the scheme or not.

There is no real incentive for cardholders themselves to sign up for the scheme, as you say, they already have fraud protection. But there is an incentive for the banks/card issuers to gradually migrate all their customers to it.

The more Merchants that offer this, the more Banks will push customers to sign up for the online PIN, as every site with this facility is transferring the responsibility back onto the Banks.

The whole scheme is designed around protecting the merchant.