Payer Authentication – also known as Verified by Visa (VbV) and MasterCard SecureCode, are security protocols made by Visa and MasterCard that allow consumers to shop online more securely. The incentive merchants have to use this feature is that Visa and MasterCard provide lower interchange rates and chargebacks protection to merchants.
In short, Payer Authentication is a validation procedure that the online shopper is the card holder. Merchants participating in this program are helping fight identity theft and consumers become more inclined to continue shopping at these secure online sites.
- Reduced Chargebacks – Merchants using Payer Authentication are getting more protection against chargebacks.
- Interchange Discounts – Some merchants may experience lower interchange rates.
- Lower Fraud Screening and Manual Review Costs – merchants spend less time and money reviewing and detecting suspicious transactions.
- Expand Internationally – Merchants can increase business in foreign markets with less risk.