As an international merchant account provider, Instabill enrolls numerous European and Asian businesses in 3D Secure credit card processing services. Verified by Visa (VbV) and MasterCard SecureCode are extremely popular in the two continents—however, it has not really taken off here in the States.
We establish hundreds of European merchant accounts and business owners consider it second nature to have 3D Secure processing technology included. So what happens to European businesses that implement Verified by Visa but have mostly U.S. customers? They tend to see a huge drop in online sales. Many U.S. cardholders do not even recall registering for 3D Secure services, and forgetting passwords has become a huge issue.
These days, most websites require visitors to register for an account and create a password, which makes it easy to forget or confuse one password for another. E-commerce merchants in Europe are feeling these effects in the form of shopping cart abandonment due to cardholders forgetting their Verified by Visa passwords—something frustrating for merchant and consumer alike.
However, Visa Europe announced at the end of July that "approximately 65% (expected to rise to more than 90% when fully rolled out) of Verified by Visa (VbV) transactions in the UK no longer require cardholders to enter their VbV password."
As I read Visa Europe's announcement, I asked myself how a password-free authentication would still maintain fraud protection for both business owner and consumer. Here is what I discovered: VbV will assess each transaction in real time based on a variety of key elements and risk factor "using a wide range of information and data sources."
It is still somewhat uncertain how, but Visa Europe assures us that the password-free authentication will allow merchants to earn more profit, make for a speedy checkout, and uphold the same level of fraud protection.
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