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Verified by Visa or Master, is it a good thing?

Discussion in 'Payment Processing' started by ZackP, Jul 26, 2016.

  1. #1
    It was suggested that we should use verified by Visa or verified by Master to fight chargebacks. I know that it represents extra screen that asks for extra code to approve transaction (purchase).
    My question is does it guarantee 100% against chargebacks, meaning if somebody paid and verified by Visa or Master can cardholder still claim chargeback?
    I understand that buyers are not happy with it since it introduces extra procedure and extra PIN to remember. But if it removes danger of chargebacks maybe it is way to go?
     
    ZackP, Jul 26, 2016 IP
  2. PerformanceCard

    PerformanceCard Peon

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    #2
    These additional layers of security can certainly help with reducing fraudulent Chargebacks since it would be hard for a thief to have a stolen card AND the 4 digit PIN. That said, Chargebacks can still occur from the actual cardholder. If they claim the product or service was not rendered properly, they can still chargeback the transaction. My recommendation is always to keep a clear and open line of communication with your customers to ensure they are happy and also offer a great refund policy.
     
    PerformanceCard, Jul 27, 2016 IP
  3. ZackP

    ZackP Greenhorn

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    #3
    You answered my question, thank you! Some of our customers are crooks or work in collusion with real card holder and that makes them crooks again. We were hoping that that extra verification PIN solves the problem of chargebacks but apparently not.
     
    ZackP, Jul 27, 2016 IP
  4. PerformanceCard

    PerformanceCard Peon

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    #4
    My pleasure, always happy to assist. Some other ways to fight Chargebacks are to use 3rd party companies like Verifi or Ethoca. Good luck!
     
    PerformanceCard, Jul 27, 2016 IP
  5. sarahk

    sarahk iTamer Staff

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    #5
    Lucky you that you have a choice.

    In NZ all online VISA transactions have to go through it and you can tell when a customer's bank has made changes to how they implement it because we start getting complaints that "your system" doesn't work. Talk to the customer and it's always at the VBV stage that the transaction is falling over. Talk to a few and you'll find the same bank has issued their cards. Our merchant provider then gets frustrated because we call them to find out how best to support our customers.

    There doesn't seem to be any logic about who gets challenged - it's not frequency of transactions on our part or the customer, nor the transaction value.

    On a personal note, I've signed up for it apparently but if I had a transaction that needed verifying I couldn't tell you my pin/password for the service - and if I can't how can I expect my customers to be able to.

    I'm all for tightening security and I'm hoping they've employed the "brightest and the best" so that VBV is, itself, the best it can be.
     
    sarahk, Jul 27, 2016 IP
  6. Froggys

    Froggys Greenhorn

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    #6
    Actually this helped me too I had a similar problem,thank you.
     
    Froggys, Jul 27, 2016 IP
  7. jestep

    jestep Prominent Member

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    #7
    VBV and MCSC are conversion killers. I don't mean like you'll lose a few customers. Unless you have a very niche product that your customers will jump through hoops to get, you'll lose most of them.
     
    jestep, Jul 28, 2016 IP
  8. fionix

    fionix Well-Known Member

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    #8
    Well if it brings down the CB ratio it may very well be worth the conversion ratio to go lower. You don't have much from sales that just get disputed and results in chargebacks which again can result in your account to be terminated and even penalties or fines. So as already suggested it's a great idea to reduce the number of CB's but it is not a guarantee to not receive any chargebacks, it's still possible.
     
    fionix, Jul 29, 2016 IP
  9. ZackP

    ZackP Greenhorn

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    #9
    This is coming from our other post about chargebacks here on the same forum. We recently signed up and started using Signifyd to fight chargebacks and it is working. See this in other post: https://forums.digitalpoint.com/threads/fight-chargeback-or-not.2784656/

    IMPORTANT UPDATE:
    Started using Signifyd and so far we like it! They provided manual entry form as well where basic purchase info can be entered and checked. So we are doing it now for old orders which we received chargebacks for. System found that 4 orders from UK were placed by 2 persons using 2 different Visa cards probably stolen from cardholder from Taiwan! One crook is Fredy Garjo from Luton, UK and second crook is Irene Warren from London (Edmonton), UK. Irene Warren stole from us U$911.93 and Fredy Garjo stole from us U$199.65!
    You have to add to those amounts 4 x Elavon processing fees and they are not small. They really appear to be a just a paper pushers and they are not fighting for us. They just send papers back and forth. We are entering old orders as we speak and wonder what else we will find out. But yes, moving to Signifyd looks like was right thing to do.
    We are in hardware/software business and we will probably post on one of our sites that we sell complete e-commerce package with that insurance integrated and included!
     
    ZackP, Jul 29, 2016 IP