Verified by VISA - Compulsory?


A

A. J. Moss

I've just placed an order for some computer hardware with an online
retailer.

I tried to use one of my credit cards to pay for it; once I had entered
my card details, it took me to a Verified by VISA page, and refused to
let me do anything - either authorise or cancel the transaction -
without first registering and entering a password for Verified by VISA.


I hit the back arrow on my browser, cancelled the transaction from the
card details page, and went through the checkout procedure using
another credit card, provided by an institution with a much better
reputation for customer service. No Verified by VISA nonsense at all
this time.

I wrote the first credit card company a nasty letter, saying I would be
closing my account with them as soon as I've paid their latest (and
final) bill.

I thought Verified by VISA is supposed to be an optional extra - at
least it was the last time I placed an order, with a different online
retailer and a third credit card.
 
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P

Paul Sharrock

A. J. Moss said:
I've just placed an order for some computer hardware with an online
retailer.

I tried to use one of my credit cards to pay for it; once I had entered
my card details, it took me to a Verified by VISA page, and refused to
let me do anything - either authorise or cancel the transaction -
without first registering and entering a password for Verified by VISA.


I hit the back arrow on my browser, cancelled the transaction from the
card details page, and went through the checkout procedure using
another credit card, provided by an institution with a much better
reputation for customer service. No Verified by VISA nonsense at all
this time.

I wrote the first credit card company a nasty letter, saying I would be
closing my account with them as soon as I've paid their latest (and
final) bill.

I thought Verified by VISA is supposed to be an optional extra - at
least it was the last time I placed an order, with a different online
retailer and a third credit card.
Verified By Visa & Securecode is supposed to be optional if your card is not
registered under the scheme at the time of placing the order. Eg the card
issuer tries to register you on the fly (Activation During Shopping), but if
the card is already registered in the scheme then its compulsory, to enable
the merchant to accept the order.

Which credit card company was it?

Paul Sharrock
 
T

TimB

A. J. Moss said:
I've just placed an order for some computer hardware with an online
retailer.

I tried to use one of my credit cards to pay for it; once I had entered
my card details, it took me to a Verified by VISA page, and refused to
let me do anything - either authorise or cancel the transaction -
without first registering and entering a password for Verified by VISA.


I hit the back arrow on my browser, cancelled the transaction from the
card details page, and went through the checkout procedure using
another credit card, provided by an institution with a much better
reputation for customer service. No Verified by VISA nonsense at all
this time.

I wrote the first credit card company a nasty letter, saying I would be
closing my account with them as soon as I've paid their latest (and
final) bill.

I thought Verified by VISA is supposed to be an optional extra - at
least it was the last time I placed an order, with a different online
retailer and a third credit card.
It may well be an optional extra, but I don't see any reason why it
can't be opt-out rather than opt-in. What do the Ts&Cs say?
 
C

clemenr

Can anyone describe the good and bad points about Verified by VISA. I
wouldn't particularly mind going through an extra hoop if there are
significant security gains by using it. While I hope I wouldn't lose
money if I fall victim to credit card fraud, but would prefer that it
doesn't happen in the first place.

I can easily google industry web pages such as:

http://www.visaeu.com/acceptingvisa/verifiedbyvisa.html

but my cynical nature concerning financial institutions leads me to ask
the question here as well.

Cheers,

Ross-c
 
C

clemenr

Wait a second. I just went through the demo of the online registration
process. If this demo is accurate then the whole process is completed
online, with no crucial link done by post. This seems to mean that if I
haven't registered for Verified by VISA, someone steals my card and I
don't notice immediately then the thief can register the card and start
shopping.

Someone please tell me that this is not the case!

Cheers,

Ross-c
 
S

Sam Smith

Wait a second. I just went through the demo of the online registration
process. If this demo is accurate then the whole process is completed
online, with no crucial link done by post.
Correct. You can do it online in a matter of seconds. You are best using it
and setting it up now as you are quite right - a thief could steal your card
and lock you out of your own account. Not sure why they'd want to though as
if they have stolen your card and there is no verified by Visa lock on it
they will just use it anyway.
 
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P

Poldie

Sam said:
Correct. You can do it online in a matter of seconds. You are best using it
and setting it up now as you are quite right - a thief could steal your card
and lock you out of your own account. Not sure why they'd want to though as
if they have stolen your card and there is no verified by Visa lock on it
they will just use it anyway.
Well, except on websites which require you to have previously verified
it, apparantly...
 
C

Chris

Sam Smith said:
Correct. You can do it online in a matter of seconds. You are best using it
and setting it up now as you are quite right - a thief could steal your card
and lock you out of your own account. Not sure why they'd want to though as
if they have stolen your card and there is no verified by Visa lock on it
they will just use it anyway.
I have seen retailers publicly state that Verified by Visa and MasterCard
Securecode transactions will be fast tracked over ones that aren't so I
suppose that they want goods shipped as fast as possible before the theft is
reported.

When I signed up for Verified by Visa it was entirely online, all they
required was the card no, cvv number, expiry date (IIRC) and the housenumber
billing postcode, with Securecode I had to enter an authorisation number
provided by the card issuer - I got mine from my online banking, but I
suppose it could equally be issued through the post.

Now to entertain the cynic in you, I suspect the real reason that card
issuers are pushing this is to try to offload losses onto cardholder as they
would like with Chip and Pin by trying to argue that only the cardholder
knows the PIN or in the case of VbV or Securecode password and it is their
responsibly to keep it secure and must have divulged it.
 
P

Poldie

A. J. Moss said:
I thought Verified by VISA is supposed to be an optional extra - at
least it was the last time I placed an order, with a different online
retailer and a third credit card.
It had better be optional, otherwise people with Cahoot cards won't be
able to buy anything online:

http://www.visaeu.com/iusevisa/uk.html
 
N

Neil Pike

It's up to the retailer whether it's optional or not. By using it they reduce
fraud/chargebacks. At some point all Card Issuers will have to offer the
service (Visa/Mastercard rules) - I can only assume that retailer had a policy
of insisting on using it as long as the Card Issuer supported it - and the
first card you used did, but not the second.

Eventually all internet retailers will insist on it... At which point to
avoid it you can always shop on the high street. ;-)
I thought Verified by VISA is supposed to be an optional extra - at
least it was the last time I placed an order, with a different online
retailer and a third credit card.
Neil Pike
Protech Computing Ltd
 
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T

Tumbleweed

Fraud Victims Left In Lurch by Bank confirms your theory

http://business.timesonline.co.uk/article/0,,8214-1982203,00.html


This isn't the only occurance reported in the press:

Barclays Play Fast & Loose With Chip & PIN

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/12/14/cmliz14.xml

Solution: Get yourself a Chip & Signature Card
Can this comment be correct? Doesnt sound right to me (the final sentence)

However, after the intervention of Times Money, NatWest admitted that a card
cloning scam had taken place. A NatWest spokesman says: "After further
investigation, and contrary to what has been said previously, the
transactions were not made using chip-and-PIN technology. While the customer's
card was a chip-and-PIN card, it still contains a magnetic strip. This strip
appears to have been cloned and the PIN read."

That is plainly ludicrous, e.g. the PIN is available to be read from the
magstripe ona C&P (or any) card. Must be either the bank spokesman screwing
up, or the newspaper.
 

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