Verified by VISA - Compulsory?

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

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?

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:

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

Cheers,

Ross-c

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

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...

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.

It had better be optional, otherwise people with Cahoot cards won't be able to buy anything online:

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. ;-)

Neil Pike Protech Computing Ltd

Fraud Victims Left In Lurch by Bank confirms your theory

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

Barclays Play Fast & Loose With Chip & PIN

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.