The Business Case for 3-D Secure™:
Until recently, Internet based card transactions have been classified as ‘card-not-present’ and ‘no signature present’ so it has been virtually impossible to prove that the actual cardholder is the person performing the payment transaction at an Internet merchant site, nor the age of the individual actually performing the transaction.
That changes with the introduction of 3-D Secure™ services which provide Internet merchants with the ability to verify the consumer’s true identity through a secure, electronic, non ‘face-to-face’ authentication process.
Payer authentication enables all parties in an eCommerce payment transaction to transmit confidential and valid payment data, and provides verification to the merchant that the buyer is the authorized owner of a particular card account. A valid and approved authentication also helps to confirm the minimum age criteria of the cardholder or guarantor (18) for those eCommerce transactions that are restricted to consumers over the age of 18.
Fraud protection:
The most compelling benefit to Verified By VISA and SecureCode™ programs for merchants and acquirers is immediate protection from fraud-related chargebacks or those commonly referred to in the eCommerce industry as "I didn’t do it" chargebacks, which often result from card number theft, card skimming, counterfeit number generation and home-based fraud by family members.
Without such protection merchants and acquirers lose revenue and incur costs associated with retrieval fees, chargebacks, and administrative costs. Both VISA and MasterCard have implemented chargeback liability shift for these “I didn’t do it” chargebacks when the transaction is authenticated through Verified By VISA or MasterCard® SecureCode™.
3-D Secure™ will vastly improve the payment service for eCommerce merchants, consumers and acquiring members by lowering credit risk, offer enhanced convenience, acceptance, and security. Consumers will know that they can shop safely and conveniently while preventing fraud on their card, and merchants will know they are dealing with a legitimate cardholder - anywhere in the world.
Fast Site Links
Merchants - Apply for cGate®SecureVerify 3-D Secure™ solutions
Acquiring Banks – Apply for cGate®SecureVerify 3-D Secure hostingtm solutions
Everyone is eligible -- anywhere:
cGate®SecureVerify is available to ANY acquirer and their merchants in ANY jurisdiction as long as the acquirer has signed the enrollment Agreement with VISA and MasterCard for the service(s). Merchant registration in 3-D Secure™ is available to any merchant regardless of their current processing and chargeback history, as long as the acquirer has completed their enrolment. VISA and MasterCard are encouraging merchants to enroll in the programmes to reduce the current fraud statistics relating to Internet purchases, which constitute 70% of all consumer card fraud.
Acquirers are encouraged to contact us or their Card Association Regional Office to obtain more information on how to sign up to enable 3-D Secure™ as a hosted solution for their eCommerce merchant portfolio.
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Worldwide Benefits of using 3-D Secure™ solutions:
Merchants, processors, ISOs and acquirers all benefit from the 3-D Secure™ authentication services as the solution operates under a worldwide security and compliance standard. Cardholders worldwide enroll in Verified By VISA and MasterCard SecureCode™ so that they can authenticate each and every online purchase they make. The overall objective is to reduce Internet fraud through the verification of the cardholder at the time of payment – taking the Internet one step closer to a true ‘cardholder present’ environment.
Benefits to merchants include:
- Simple set up – no software to purchase, no merchant “plug-in” to install.
- Immediate access to Verified By VISA and MasterCard. SecureCode™ once enrolled by the acquirer.
- Protection from consumer fraud losses, unauthorized transactions and disputes.
- Chargeback liability shift for certain reason codes.
- Increased consumer confidence leading to increased sales.
- Age validation for restricted web sites.
- Increased card acceptance over other payment methods – increased sales!
- Lower transaction costs – allowing for more competitive product pricing.
- Greater income potential from reduced transaction costs and chargeback penalty fees.
- MasterCard SecureCode™ and Verified By VISA program benefits, marketing and support.
Benefits to acquiring banks include:
- Better and cheaper than chargeback insurance!”
- Immediate reduction in interchange costs for 3-D Secure™ authenticated ecommerce transactions – up to 50 basis points savings on 3-D Secure™ transactions – even attempted VISA 3-D Secure™ transactions!
- Immediate reduction in credit risk, disputed transactions, chargebacks, exception handling expenses, and portfolio losses.
- Immediate reduction in back office costs and administration relating to retrieval requests, dispute handling, chargeback investigation and lengthy presentment cases.
- Fast and easy enrollment – no MPI software to purchase – installation and certification are completed on your behalf!
- Reduced capital expenditure in relation to other fraud management and detection services/software.
- Guaranteed liability shift from acquirer to issuer for certain chargeback reason codes – check with your regional country representative for a list of valid chargeback liability shift conditions as these vary by region.
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Secure and simple MPI Hosting Solutions for acquirers:
We offer merchants and acquirers a comprehensive ‘hosted’ solution for 3-D Secure™ MPI solutions. The 3-D Secure™ MPI software resides on our servers on behalf of the merchant AND the acquirer, taking the software installation and administrative responsibilities away from the merchant/bank so they can focus on growing and managing their business. There is no plug-in for the merchant to install and no software for the bank to purchase support or test.
We can also host the 3-D Secure™ software and MPI on behalf of acquirers who have opted to license their own software for 3-D Secure™ but simply require secure and CISP/AISP compliant management of the software on behalf of their acquiring solutions. Our flexibility allows the acquirer to choose whether to use our MPI solutions or have the bank host their own MPI at our secure facility.
Whether the bank processes in-house clearing connected to a VIP and MAP directly or leverages a 3rd party processor for clearing and settlement, we can provide secure hosting options for the bank’s MPI software.
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Simple set up – fast enrollment - multiple benefits!
cGate® SecureVerify installs as a ‘web service’ or link through a web URL to the our hosted MPI software. We manage the entire 3-D Secure™ software solution on behalf of both the merchant and the acquiring bank.
The acquirer has the option of enrolling one, some or all of their merchant portfolio to improve the quality of the overall merchant portfolio and risk – we take responsibility for all compliance upgrades and software changes required by VISA® and MasterCard® to support cGate®SecureVerify services on behalf of acquirers and merchants.
We ensure that the bank and the merchant can continue on with day-to-day business without disruption.
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Innovative merchant implementation options:
cGate® SecureVerify can be implemented easily at any merchant site, whether the merchant hosts their own payment check-out page OR if they require a secure check-out payment page with built in 3-D Secure™ functionality. Merchants can choose the solution that best fits their needs. We can support both options leaving merchants to focus on the business of selling without disruption!
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What merchants need to do - getting started:
If you are interested in implementing Verified By VISA and SecureCode™ at your eCommerce web site, here are the steps to follow:
- Ask the bank where you have your merchant account if they are signed up with VISAtm and MasterCard® in your Region for Verified By VISA and MasterCard SecureCode™.
- Once your acquiring bank has enrolled with Verified By VISA and MasterCard SecureCode™, we can work with you to test and implement the secure service to your web site as quickly as possible.
- If your merchant bank is NOT signed up for Verified By VISA or MasterCard® SecureCode™ have them review our web site to and print this requirements section and take it to your bank to review.
- Once your bank has signed up for 3-D Secure™ with both VISA and MasterCard®, complete the cGate®SecureVerify application form on our web site.
- One of our technical team members will be contact you to arrange for completion of the paperwork and implementation of 3-D Secure™ to your web site. It’s that easy!
- Chargeback liability shift for certain Reason Codes takes effect immediately once you are live with 3-D Secure™. If you are a high-risk merchant currently listed on the Global Chargeback Monitoring Programme you are eligible for chargeback liability shift within 3 months after you have been removed from this program.
- Sign up today for cGate®SecureVerify to eliminate chargebacks, get yourself off the Chargeback Monitoring Programme, and start taking advantage of chargeback liability shift to protect your business and increase your profits! Click here to complete our 3-D Secure™ Merchant Application.
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What acquiring banks need to do - getting started:
If you are interested in implementing Verified By VISA and SecureCode™ for your eCommerce merchant portfolio, here are the steps you must follow:
- Contact your regional VISA and MasterCard representatives to advise them the bank is interested in signing up for Verified By VISA and MasterCard SecureCode™ for eCommerce acquiring.
- VISA will provide you with the Acquirer Enrollment Form to complete with your banking information; MasterCard will provide you with the SecureCode™ Member Enrollment Form to complete. We can also provide you with these forms if you choose to leverage cGate®SecureVerify.
- Depending on your region, VISA requires completion of Verified By VISA Terms and Conditions agreement which is available from VISA Online – check with your regional rep to see if this is required in your Region.
- The bank needs to then decide if they are going to purchase/license their own MPI software, and where they will host it, OR if they are going to leverage the hosting services or cGate®SecureVerify solutions provided by us.
- VISA and MasterCard will assign a project team to begin the implementation process based on the bank’s decision to host their own MPI or outsource 3-D Secure™ services to us.
- Our licensed MPI software is already certified with VISA and MasterCard and does not require additional certification (PIT testing) for new acquiring bank programmes, however in certain cases, functional testing with a test merchant site is required to ensure ‘end-to-end’ connectivity and message translation is correct between our MPI, the merchant’s payment gateway, and the bank’s acquiring processor (connected to interchange).
- VISA and MasterCard will advise the acquiring bank when testing and implementation is complete and when merchants can be enrolled for 3-D Secure™ payer authentication services. Testing only needs to take place with the first merchant that is registered, and is not required for all merchants.
- Enrollment of merchants in 3-D Secure™ can be completed by us on behalf of the acquirer, or the acquirer can elect to enroll their own merchants directly. Tell us what works best for your organization.
We work with VISA and MasterCard® to assist the acquiring bank with making the right choices associated with 3-D Secure™ MPI hosting solutions based on your business and operational objectives.
Talk to us to discuss your various options and what makes the most sense for your acquiring merchant portfolio.
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Fast and easy implementation with merchant web sites:
Our cGate®SecureVerify services can support multiple merchants and multiple acquirers, enabling us to manage multiple clients for Payer Authentication securely and efficiently across all Regions.
Use ANY payment solution globally and take full advantage of the benefits of our cGate® SecureVerify service. We are able to offer payer authentication services to acquirers and merchants independently from payment gateway services allowing clients to take advantage of a variety of solutions that meet global objectives without impact to primary payment processing or banking infrastructure.
cGate®SecureVerify is the perfect solution for large processors and aggregators who can control the number and quality of the merchants that are enrolled. Alternatively, we can work with the acquirer to establish a multi-currency payment gateway relationship for their enrolled merchants.
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“The solution” for high volume aggregators and processors:
This solution is ideal for payment processors, transaction aggregators and IPSP’s who process high volume based card transactions, with the objective to implement Verified By VISA and SecureCode™ to reduce portfolio risk and fees associated with chargebacks.
The benefits to high volume transaction aggregators are:
- Long term retention of 3-D Secure™ compliant merchants with acquiring bank(s).
- Immediate reduction in disputed transactions, chargebacks, exception handling fees, and portfolio losses.
- Immediate reduction in penalty fees and fines associated with high risk merchant transactions.
- More negotiable discount rates for 3-D Secure™ authenticated eCommerce transactions – immediate savings across the acquiring business portfolio.
- Fast and easy enrolment – no MPI software to purchase – installation and certification are completed on your behalf by our team!
- “Pay as you Go” enrolment model – register one, some or all of your entire portfolio!
- Aggregators can decide which merchants to set up for 3-D Secure™.
- Guaranteed liability shift for certain important chargeback Reason Codes.
- Reduction of high risk merchants from the Global Chargeback Monitoring Programs.
- A more competitive eCommerce service to attract net new merchant business.
- Overall improvement in merchant portfolio and profitability.
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To assist with implementation and enrollment of cGate®SecureVerify we provide the following support to merchants and acquiring banks;
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Learn more!
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3-D Secure™ Hosting Solutions for acquiring banks
Comparison of in-house solutions versus our cGate®SecureVerify MPI solutions:
Business Issues |
In-House MPI Purchase and Implementation |
FAC 3-D Secure™ Solution cGate®SecureVerify |
Hardware and Software Requirements |
Hardware, software, firewalls, purchases required – up to $35,000 in added costs |
Provided and supported by us |
3-D Secure™ MPI Software and Licensing Fees |
- MPI License Fees ranging from $20,000 to $50,000 per Acquirer
- Up to $15,000 in added consultancy costs for implementation
- $10,000 per annum in License, support and renewal fees
- Ongoing compliance upgrades – consultancy costs $10,000+ per annum
- Hardware and network costs stated above
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- $7500 flat fee - includes set up and functional testing with 3-D Secure™ test team(s) and Payment Processor .
- All ongoing consultancy and/or software modification costs for compliance upgrades are included in our program.
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TOTAL CAPITAL START UP COST EST $120,000.00 |
TOTAL START UP COST $7500.00 |
CISP/SDP Audit Fees |
- Required to host 3-D Secure™ MPI software for VISAtm and MasterCard® security compliance
- Audit and consultancy costs approx $25,000., not including costs for required security fixes
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- We have completed compliant VISA CISP/AISP and MasterCard SDP independent security audits.
- No pass through cost to acquiring banks.
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Merchant Fees |
Up to $175/year per merchant.
Acquirer must employ staff to register and monitor merchant certificates, passwords and messages for the VISA and MasterCard® Directory Servers
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Pay-as-you-Go – merchant registration model - $125 per merchant per year. We can register 3-D Secure™ merchants with VISA and MasterCard® on behalf of the acquiring bank.
Competitive and flexible per authentication fee model based on merchant volume and risk category. |
Merchant Software Installation |
Merchant must install software plug-in on their web site to connect to MPI software hosted at bank to enable 3-D Secure™ pop-up window
OR
Acquirer must provide direct payment page with 3-D Secure™ enabled function via secure based web services to the merchant |
No software to install at merchant site;
We can support two options;
- We provide the secure web links to our MPI for merchants who have their own payment page.
- We provide the compliant 3-D Secure™ payment page for merchants needing this solution.
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Payment Gateway Services Bundled with 3-DSecure™m Payer Authentication |
Requires separate software application, merchant plug-ins etc with costs of up to $300,000. |
We can support multi-currency and multi-platform payment gateway solutions bundled with 3-D Secure™ - priced separately. |
If the acquiring bank has already licensed and purchased 3-D Secure™ compliant MPI software from a certified vendor we can provide MPI Hosting Services (only) on behalf of the bank and the vendor. We are fully compliant with VISA and MasterCard system and site data security and have recently completed the independent CISP/AISP and SDP security reviews.
Secure Hosting of Vendor MPI with FAC |
Hardware and Software included in our hosting solution – a savings of up to $35,000 or more! |
Bank est costs to license compliant MPI software:
- MPI License Fees ranging from $20,000 to $50,000 per acquirer.
- Up to $15,000 in added consultancy costs for implementation.
- $10,000 per annum in License, support and renewal fees.
- Ongoing compliance upgrades – consultancy costs $10,000+ per annum.
FAC Hosting Fees
- $3500 flat fee for installation and functional testing only.
- $825/month/Acquirer MPI hosting (only) fee.
- All other services including merchant registration at quoted rates.
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- We have completed compliant VISA CISP/AISP and MasterCard SDP independent security audits – a cost savings to the acquirer of up to $25,000 for the independent audit/review.
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Per merchant license fees - up to $175/year per merchant, payable to MPI vendor by acquirer.
Acquirer must employ staff to register and monitor merchant certificates, passwords and messages for the VISA and MasterCard® Directory Servers. |
Merchant must install software plug-in on their web site to connect to MPI software hosted at FAC to enable 3-D Secure™ pop-up window. |
We can provide multi-currency and multi-platform payment gateway solutions bundled with bank MPI - priced separately. |
Acquiring Banks – apply for cGate®SecureVerify or 3-D Secure™ MPI hosting solutions
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