Are there plans to add "Verified by VISA" or the "MasterCard SecureCode" to Shopify Payments?
I know we can use other payment providers that do offer this, but we would rather not switch.
Verified by VISA and MasterCard SecureCode add an extra layer of security. Users will be asked to put in their credit card details as per usual and will then be asked to enter their password. That way, if a card or their card details get stolen, nothing can be ordered from any online stores as the thief does not have the password.
Normally if someone orders something from an online store with a stolen credit card, this results in a chargeback and the online store loses the payment and the goods, as the risk is ours (at least here in Australia it works that way). If the card is protected by a password and the thief has both the card and the password, that's the consumer's fault, so the online store can't get a chargeback as it's the customer's fault if they have lost their password (this would hardly ever happen anyway).
The system exists, it adds an extra layer of security, so why not offer it?
Because, as a customer, it reduces my ability to charge back the transaction in the event there is a problem. It's also really annoying in the majority of transactions where there is no problem. Make no mistake that this mechanism exists to protect the credit card company. It doesn't really protect anyone else.
Believe me it does protect the vendor. I've lost count of the number of times I've had people saying that their kid made the purchase etc.
I don't see how it reduces your ability to make a chargeback. If the good are faulty, don't arrive etc then it makes no difference, at least not in Europe but we do have far better consumer protection than most of the world.
Matthew, thank you for your input. I'm very curious as to why you believe it would deter customers and why you don't like to buy from stores that use this yourself? Back in The Netherlands (where I'm from originally) it was very common for large online stores to use Verified by Visa or Mastercard Secure. They would not be using it if they believed they would be losing customers because of it. In Australia (where I live now and run my online store), stores don't use it yet, but I believe that as soon as the option becomes available, everyone would.
It adds an extra layer of security to protect the vendor (not the credit card company, they don't lose any money due to fraudulent transactions as they simply do a charge back). If it would protect the credit card company it would have already been implemented ages ago.
So why would you be deterred by it, Matthew? You say that it's because it reduces your ability to charge back the transaction in case of a problem? Why would that be the case? It just means you cannot do a chargeback if there is NO problem with the transaction, which is only fair.
You would have to type in a password while processing the payment, but by the time the store is asking for a password, the customer has already made up their mind to buy, so why would it deter them at that stage of the buying process?
I'm curious as your view is the exact opposite of mine. You say that many people hold that same view and, even though I find it hard to believe, you could be right, so please explain what your thoughts are.
What's the case of the card being used in which the card company is liable with the verification, and wouldn't be without it? Similarly, when would it be the customer's liability without verification and someone else's with it? The net effect is to move liability away from the card company and move liability onto the customer. That's not a plus for the customer.
Whether there's a net increase or decrease in liability for the merchant is not clear and would depend on how likely different kinds of cases are, but combined with the increase in annoyance factor, it sure looks like something I don't want for my own store. Maybe a merchant who saw an important decrease in their own liability would prioritize it differently.
As merchants we spend huge amounts of time and money trying to reduce the number of clicks between when customers start moving toward buying and when we have their money. The prevalence of abandoned carts alone argues against your proposal that "the customer has already made up their mind to buy"; the way I see it is that every single click costs me a percentage of my sales as potential customers close the browser window instead, and they haven't really committed until the payment processor has collected their money, paid it to me, and the return and chargeback deadlines have passed. There's no last click after which they won't call it off, except the one that really is the last click.
Verification services add a few clicks even when the customer can remember their password; if they can't remember, they're facing another run through the laughably insecure password-recovery ritual. I've done that a few times over the years (verified by address and birthdate, at most) and it's simultaneously easy enough not to keep away a determined thief, and complicated enough that as a legitimate customer, instead of doing it I'd rather just go find a different merchant that makes it easier for me to pay them. On the merchant side, I just don't want my store to be the hard-to-use one.
I see your point, but clicking away to another site, finding out whether they've got the same product (at the same price) etc. etc. is a lot more clicks than just filling out your password. If it's the norm, everyone would remember their password, so it wouldn't be an issue and once it's available, I reckon it would be the norm very quickly as all vendors would want the extra protection.
So when a customer types in their credit card and their details, it has to be the actual customer, unless they had their card AND their password stolen. If that's the case, then that's their fault and they are liable. In the case that they had their card details stolen, we (the retailer) are liable, since we haven't seen the actual card and checked the signature on it, like you would do in store.
I would love this system and would implement it right away and I think most (if not all) retailers in Australia would, to prevent theft. Like I said, I believe that once it's the norm, everyone will adopt it, like they have in countries where it is available.
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