Verified by Visa

What Is Verified by Visa?

Verified by Visa is an added layer of security for online credit and debit card transactions. It's designed to prevent unauthorized use of Visa cards by requiring cardholders to complete an additional verification step with the card issuer when making purchases online. This system is part of Visa’s broader 3-D Secure protocol, which enhances digital transaction security globally.

Originally launched in the early 2000s, VBV has since evolved into what is now often referred to as Visa Secure, which incorporates advanced authentication technologies such as risk-based analysis and biometric verification.

How the VBV Process Works

When a customer makes an online purchase with a Visa card at a participating merchant, the VBV system may trigger the authentication process. Here's how it typically works:

1. Purchase Initiation: The customer selects items and proceeds to checkout on the merchant’s website.
2. VBV Authentication: If the transaction is flagged for verification, the customer is redirected to their card issuer’s verification page.
3. Verification Step: The customer may be asked to confirm their identity using a password, a code sent to their phone, or biometric information (like a fingerprint or facial recognition).
4. Transaction Completion: Once verified, the purchase proceeds as usual. If the verification fails or is canceled, the transaction is declined.

This process helps ensure that the person making the transaction is the legitimate cardholder.

Benefits for Merchants and Consumers

For Merchants:

• Reduced Fraud: VBV significantly lowers the risk of fraudulent chargebacks by authenticating the buyer's identity.
• Chargeback Liability Shift: In many cases, liability for fraudulent transactions shifts from the merchant to the card issuer when VBV is used.
• Customer Trust: A secure checkout process enhances consumer confidence in the merchant's platform.

For Consumers:

• Increased Security: Shoppers gain peace of mind knowing that even if card details are stolen, transactions can’t be completed without additional authentication.
• Real-Time Alerts: Many banks provide instant alerts for VBV transactions, enabling customers to quickly detect any suspicious activity.
• Faster Approvals: With risk-based authentication, many low-risk transactions are approved instantly, reducing friction in the checkout process.

Related

• Visa Secure: The modern evolution of VBV with enhanced features.
• 3-D Secure 2.0: The updated protocol that powers VBV, supporting mobile and biometric authentication.
• Mastercard Identity Check: Mastercard’s equivalent of VBV.
• Strong Customer Authentication (SCA): A regulation under PSD2 in Europe that complements services like VBV to protect online payments.